| Company: | Pharmos Corp. |
| Ticker Symbol: | NASD: PARS |
| Class Period: | August 23, 2004 to December 17, 2004 |
| Date Filed: | Jan-25-05 |
| Lead Plaintiff Deadline: | Mar-25-05 |
| Court: | District, NJ |
| Allegations: |
A class action has been filed in the United States District Court for the District of New Jersey on behalf of all persons who purchased the publicly traded securities of Pharmos Corp. (Nasdaq: PARS) ("Pharmos") between August 23, 2004 and December 17, 2004 (the "Class Period").
The Complaint alleges that Pharmos violated federal securities laws by issuing false or misleading public statements. Specifically, the Complaint alleges that Dexanabinol, the company's flagship drug product, in Phase III trials for Traumatic Brain Injury ("TBI") trial, was not exhibiting a materially favorable reaction. However, prior to disclosing this information to the public, Pharmos sold $16.75 million worth of stock in a private placement. Furthermore, the company's CEO sold 20% of his holdings and its President sold almost 50% of his holdings. Such sales occurred after the close of Phase III enrollment and after the six month post-enrollment period had concluded. On December 20, 2004, just weeks after insiders sold 400,000 shares of stock, Pharmos announced that Dexanabinol was not found to be materially effective in Phase III testing. Furthermore, after years of touting the effectiveness of Dexanabinol, Pharmos abruptly ceased its effort to gain approval for Dexanabinol for TBI.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
The Complaint alleges that Pharmos violated federal securities laws by issuing false or misleading public statements. Specifically, the Complaint alleges that Dexanabinol, the company's flagship drug product, in Phase III trials for Traumatic Brain Injury ("TBI") trial, was not exhibiting a materially favorable reaction. However, prior to disclosing this information to the public, Pharmos sold $16.75 million worth of stock in a private placement. Furthermore, the company's CEO sold 20% of his holdings and its President sold almost 50% of his holdings. Such sales occurred after the close of Phase III enrollment and after the six month post-enrollment period had concluded. On December 20, 2004, just weeks after insiders sold 400,000 shares of stock, Pharmos announced that Dexanabinol was not found to be materially effective in Phase III testing. Furthermore, after years of touting the effectiveness of Dexanabinol, Pharmos abruptly ceased its effort to gain approval for Dexanabinol for TBI.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
Register your Case
If you feel you qualify for damages or remedies that might be awarded in this class action please fill in our form on the right to submit your complaint.
