Message #24 From:
NewsBot Date: October 30, 2006 05:52:00 AM
SVNT News Savient Pharmaceuticals Announces Dismissal of Class-Action Lawsuit
EAST BRUNSWICK, N.J.--(BUSINESS WIRE)--Savient Pharmaceuticals, Inc. (NASDAQ:SVNT) today announced that the
United States District Court for the District of New Jersey has
dismissed, with prejudice, the Class Action originally filed on December
20, 2002, against the Company and three of its former officers.
Christopher Clement, president and chief executive officer of Savient
Pharmaceuticals, commented, “We are pleased
with the Court’s decision as this is the
second ruling by the Court in favor of dismissing the plaintiffs’
complaint and, we believe, supports our long-standing position that the
lawsuits were without merit.”
The original Class Action Complaints were filed in December 2002, and
January, 2003, against Bio-Technology General Corporation (BTG), now
known as Savient Pharmaceuticals, Inc., on behalf of investors who had
purchased shares of BTG during an alleged Class Period of April 19,
1999, through August 2, 2002. The Complaints alleged that these
investors had allegedly been defrauded because, on September 25, 2002,
the Company filed restated year-end and quarterly reports of its
earnings and related financial statements for the years 1999, 2000 and
2001, which the Company had previously announced would be forthcoming in
its Form 8-K and accompanying press release issued August 2, 2002.
The plaintiffs filed a First Amended Consolidated Class Action Complaint
on September 25, 2003. On August 10, 2005, the Court granted, without
prejudice, Savient Pharmaceuticals’ motion to
dismiss the First Amended Complaint, and allowed the plaintiffs to
re-plead their Complaint. In October 2005 the plaintiffs filed the
Second Amended Complaint (“SAC”)
which Savient Pharmaceuticals again moved the Court to dismiss.
The Court’s decision dismissing the SAC is
based on the plaintiff’s continued failure to
set forth particularized facts, through direct or circumstantial
evidence, which give rise to a strong inference that the defendants
acted with intent to defraud, recklessness or a conscious disregard of
the truth. The Court also concluded that plaintiffs had not demonstrated
that there was any evidence that, if given yet another opportunity, the
plaintiffs would be able to cure these defects. The Court, therefore
declined to allow plaintiffs to file yet another amended complaint, and
instead dismissed the action with prejudice. Plaintiffs have the right
to file an appeal.
About Savient Pharmaceuticals, Inc.
Savient Pharmaceuticals is a biopharmaceutical company engaged in
developing, manufacturing and marketing pharmaceutical products that
target unmet medical needs in both niche and broader markets. The
Company's lead product development candidate, Puricase®
(PEG-uricase) for treatment failure gout, has reported positive Phase 1
and 2 clinical data; patient dosing in Phase 3 clinical studies began in
June 2006. Savient's experienced management team is committed to
advancing its pipeline and expanding its product portfolio by
in-licensing late-stage compounds and exploring co-promotion and
co-development opportunities that fit the Company's expertise in
biopharmaceuticals with an initial focus in rheumatology. Savient also
markets Oxandrin® (oxandrolone tablets, USP)
CIII in the U.S. Puricase is a registered trademark of Mountain View
Pharmaceuticals, Inc. Further information on Savient can be accessed by
visiting: www.savientpharma.com.
FORWARD-LOOKING LANGUAGE
This news release contains forward-looking statements that are subject
to certain risks, trends and uncertainties that could cause actual
results and achievements to differ materially from those expressed in
such statements. These risks, trends and uncertainties are in some
instances beyond the Savient's control.
Words such as "anticipate," "believe," "estimate," "expect," "intend,"
"plan," "will" and other similar expressions help identify
forward-looking statements, although not all forward-looking statements
contain these identifying words. These forward-looking statements
involve substantial risks and uncertainties and are based on current
expectations, assumptions, estimates and projections about Savient's
business and the biopharmaceutical and specialty pharmaceutical
industries in which Savient operates. Such risks and uncertainties
include, but are not limited to, Savient's stock price and market
conditions, delay or failure in developing Puricase®
(PEG-uricase) and other product candidates, difficulties of expanding
Savient's product portfolio through in-licensing, introduction of
generic competition for Oxandrin®,
fluctuations in buying patterns of wholesalers, potential future returns
of Oxandrin® or other products, Savient's
continuing to incur substantial net losses for the foreseeable future,
difficulties in obtaining financing, potential development of
alternative technologies or more effective products by competitors,
reliance on third-parties to manufacture, market and distribute many of
Savient's products, economic, political and other risks associated with
foreign operations, risks of maintaining protection for Savient's
intellectual property, risks of an adverse determination in ongoing or
future intellectual property litigation, and risks associated with
stringent government regulation of the biopharmaceutical industry.
Savient may not actually achieve the plans, intentions or expectations
disclosed in Savient's forward-looking statements. Actual results or
events could differ materially from the plans, intentions and
expectations disclosed in the forward-looking statements that Savient
makes. Stockholders should not place undue reliance on the
forward-looking statements, which speak only as to the date of this
press release. Savient's forward-looking statements do not reflect the
potential impact of any future acquisitions, mergers, dispositions,
joint ventures or investments that Savient may make. Except as required
by law, Savient does not assume any obligation to update any
forward-looking statements.
