Biotechnology Industry News Sample

Nov 29, 2005 12:00:13

GENTA INC.: NJ Court Dismisses Securities Fraud Lawsuit in Part

NEW JERSEY (SunStream News) -- The United States District Court for the District of New Jersey granted in part Genta, Inc.'s motion to dismiss the consolidated securities class action filed against it and certain of its principal officers on behalf of purported classes of the Company's shareholders who purchased Company securities during several class periods.

The consolidated suit alleges that the Company and certain of its principal officers violated the federal securities laws by issuing materially false and misleading statements regarding Genasense, for the treatment of melanoma that had the effect of artificially inflating the market price of the Company's securities. The shareholder class action complaint in the various actions seeks monetary damages in an unspecified amount and recovery of plaintiffs' costs and attorneys' fees.

In addition, three shareholder derivative actions have been filed against the directors and certain officers of the Company in New Jersey State and Federal courts. Based on facts substantially similar to those asserted in the shareholder class actions, the derivative plaintiffs claim that defendants have breached their fiduciary duties to the shareholders and other violations of New Jersey law.

On September 30, 2005, the court granted in part and denied in part the Company's motion to dismiss the plaintiffs' complaint. The court dismissed plaintiffs' claim that the defendants engaged in a scheme or artifice to defraud plaintiffs, but allowed plaintiffs' claims to proceed with respect to their allegations that defendants issued false and misleading public statements about Genasense. On October 17, 2005, defendants filed an answer to the complaint and will soon commence pre- trial discovery.

The suit is styled "In re Genta, Inc. Securities Litigation, case no. 2:04-cv-02123-JAG-GDH," filed in the United States District Court in New Jersey, under Judge Joseph A. Greenaway, Jr. Representing the plaintiffs are Melvyn I. Weiss, MILBERG, WEISS, BERSHAD & SCHULMAN, ESQS., One Pennsylvania Plaza, New York NY 10119 Phone: 212-594-5300; and Patrick Louis Rocco, SHALOV STONE & BONNER LLP 163 Madison Avenue PO Box 177 Morristown, NJ 07962-1277 Phone: (973) 775-8997 E-mail: procco@lawssb.com. Representing the Company are Thomas A. Cunniff, Jack L. Kolpen FOX ROTHSCHILD LLP Princeton Pike Corporate Center 997 Lenox Drive Building 3, Lawrenceville NJ 08648-2311 Phone: (609) 896-3600 Email: tcunniff@foxrothschild.com or jkolpen@foxrothschild.com.

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Source: Class Action Reporter

Publication Date: 2005-11-29

 

COY:	GNTA

IND:	BIO

GEO:	n-us-nj

 

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