Supplementary Medicine Industry News Sample

Jun 10, 2002 03:18:50

ZONAGEN INC.: Asks Court To Dismiss Remaining Securities Claim in Suit

FREDERICK, Maryland (SunStream News) -- Zonagen, Inc. asked the United States District Court for the Southern District of Texas, Houston Division to dismiss the one remaining claim in the consolidated securities class action pending against the Company and certain of its officers and directors. The consolidated suit alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 thereunder on behalf of all purchasers of the Company’s common stock between February 7, 1996 and January 9, 1998. The suit asserted that the defendants made materially false and misleading statements and failed to disclose material facts about the patents and patent applications of the Company relating to VASOMAX® and Chito-ZN (formerly named ImmuMax™) and about the Company’s clinical trials of VASOMAX®. The Company then asked the court to dismiss the suit, which the court granted in March 1999. The plaintiffs then filed an appeal in the US Fifth Circuit Court of Appeals. In September 2001, the appellate court affirmed the dismissal of all claims except one and reversed the trial court’s dismissal of a claim concerning the Company’s disclosure about a patent relating to VASOMAX®. The defendants have filed a motion to dismiss that one remaining claim, and that motion is still pending. The Company and the individual defendants believe that these actions are without merit and intend to defend against them vigorously. No estimate of loss or range of estimate of loss, if any, can be made at this time. Management believes there will be no material adverse effect related to this matter.

ss/bal

Source: Class Action Reporter

Publication Date: 2002-06-10

 

NWS:	LAW

COY:	ZONA

IND:	MTC
	SPM

GEO:	n-us-tx

Back to Industry News Samples List