SOURCE: Kahn Swick & Foti, LLC

November 12, 2009 01:10 ET

INVESTOR ALERT: Former Attorney General of Louisiana Charles C. Foti, Jr. and KSF Notify Hemispherx Biopharma, Inc. Investors of Lead Plaintiff Application Deadline in Securities Class Action Lawsuit -- HEB

NEW ORLEANS, LA--(Marketwire - November 12, 2009) - Kahn Swick & Foti, LLC ("KSF") announces that investors have only until January 11, 2010 to apply for lead plaintiff in a securities class action lawsuit filed in the United States District Court for the Eastern District of Pennsylvania, on behalf of all purchasers of the securities of Hemispherx Biopharma, Inc. ("Hemispherx" or the "Company") (AMEX: HEB) between February 18, 2009 and October 30, 2009 (the "Class Period"). No class has yet been certified in this action.

If you would like to discuss your legal rights, along with the lead plaintiff position and its related responsibilities including overseeing lead counsel with a goal of obtaining a fair settlement, you may e-mail or call KSF Managing Partner Lewis Kahn, without obligation or cost to you, toll free 1-866-467-1400, ext. 100, via cell phone after hours at 504-301-7900, or by email at lewis.kahn@ksfcounsel.com.

Hemispherx and certain of its executive officers are charged with making a series of materially false and misleading statements related to the Company's business and operations in violation of the Securities Exchange Act of 1934. Specifically, the complaint alleges that, during the Class Period, defendants misled investors regarding the status of Hemispherx's New Drug Application ("NDA") for Ampligen with the U.S. Food and Drug Administration ("FDA"). Including, that defendants failed to disclose and misrepresented the fact that the FDA had requested several reports from the Company before the NDA could even be considered, thus delaying the possible approval of Ampligen by several months at a minimum.

On November 2, 2009, when the Company belatedly disclosed this information, the per share price of Hemispherx's common stock dropped from $1.45 on the previous day to $1.13, a drop of more than 20%. The following day, reporters on TheStreet.com stated that:

         Hemispherx Biopharma issued an "update" to the regulatory status
         of its chronic fatigue syndrome drug Ampligen in which the
         company essentially admits that its prior public statements were
         false and misleading.

         [The Company's CEO] made these statements both before and
         immediately after the FDA approval decision date for Ampligen on
         May 25, which came and went without any word from the agency. We
         now know that Carter's statements were demonstrably false. The FDA
         application for Ampligen was not complete because several items
         were outstanding, the company now states. These included FDA
         requests for data on Ampligen's safety both in humans and animals.
         The FDA also required additional information about Ampligen's
         manufacturing.

         Carter's public statements helped boost Hemispherx's stock price
         during the spring and early summer months and benefited the
         company when it went to raise money from investors.

If you wish to serve as lead plaintiff in this class action lawsuit, you must move the Court no later than January 11, 2010. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. If you would like to discuss your legal rights, you may e-mail or call KSF Managing Partner Lewis Kahn, without obligation or cost to you, toll free 1-866-467-1400, ext. 100, after hours via cell phone 504-301-7900, or by email at lewis.kahn@ksfcounsel.com. To learn more about KSF, you may visit www.ksfcounsel.com. KSF is a law firm focused on securities class action litigation with offices in New Orleans and New York City.

KSF's lawyers have significant experience litigating complex securities class actions. Among other cases, KSF has been appointed Lead or Co-Lead Counsel in the following securities cases: In re: U.S. Auto Parts Networks, Inc. Securities Litigation, C.D. Cal.; In re Xethanol Corporation Securities Litigation, S.D.N.Y.; In re Superior Offshore International, Inc. Securities Litigation, S.D. Tex.; Terayon Comm. Systems Inc., N.D. Cal.; and In re BigBand Networks, Inc. Securities Litigation, N.D. Cal.

SPECIAL NOTICE: KSF encourages you to carefully evaluate any firm you may consider to represent your interests in the Hemispherx class action. The Private Securities Litigation Reform Act ("PSLRA") permits Company shareholders to choose counsel of their choice to prosecute this action. Critical components of a law firm's ability to successfully prosecute this action and obtain a strong recovery for you include the resources it will dedicate to prosecution of the case, including the number of lawyers the firm has available for the Hemispherx action in particular, AND especially the quality of the firm's work. While KSF has not filed suit yet, the firm is currently conducting its own investigation of Hemispherx and interested shareholders are encouraged to call for consultation.

Contact Information

  • Contact:
    Lewis Kahn
    Kahn Swick & Foti, LLC
    650 Poydras St., Suite 2150
    New Orleans, LA 70130
    1-866-467-1400, ext. 100
    Lewis.kahn@ksfcounsel.com