NEW YORK, NY--(Marketwire - March 19, 2010) - Abraham, Fruchter & Twersky, LLP filed a class action lawsuit in the United States District Court for the District of Massachusetts (Case No. 10 Civ. 10470) on behalf of purchasers of the common stock of AMAG Pharmaceuticals, Inc. ("AMAG" or the "Company") (
The complaint charges the Company and certain of its officers with violations of the Securities Act. AMAG is a biopharmaceutical company engaged in the development and commercialization of therapeutic iron compounds to treat anemia worldwide.
According to the complaint, on or about January 21, 2010, the Registration Statement (the "Registration Statement") with respect to the Secondary Offering became effective and 3.6 million shares of AMAG common stock were sold to the public at $48.25 per share, thereby raising more than $173 million.
The complaint alleges that the Registration Statement failed to disclose that users of the Company's primary drug, Feraheme, had suffered adverse reactions, some requiring hospitalization. On February 4, 2010, Carol Werther, a Summer Street analyst downgraded AMAG from buy to neutral. In a note to clients she wrote, "We are aware of several patients hospitalized with anaphylactiod reactions to Feraheme. We are aware of one death that may or may not be directly related to Feraheme." On disclosure of this news, AMAG's stock fell over $7.00 per share to close at $38.12 per share.
The complaint further alleges that the Registration Statement failed to disclose that the effect of the Company's rebate program would be to front load sales into the fourth quarter causing sales to drop off after the Offering was completed. On this disclosure, AMAG's stock price once again declined, closing on March 1 at $34.17 per share down $4.02 from the previous day's closing price of $38.19.
Plaintiff seeks to recover damages on behalf of all purchasers of AMAG's common stock in the Secondary Offering. The Plaintiff is represented by Abraham, Fruchter & Twersky, LLP which has extensive experience in securities class action cases, having been ranked among the leading class action law firms in terms of recoveries achieved by a survey of class action law firms conducted by Institutional Shareholder Services.
If you would like to discuss this action or if you have any questions concerning this notice or your rights as a potential class member or lead plaintiff, you may contact: Jack Fruchter or Arthur J. Chen of Abraham, Fruchter & Twersky, LLP at 212-279-5050, or via e-mail at info@aftlaw.com or achen@aftlaw.com, respectively. If you wish to serve as lead plaintiff, you must move the Court no later than sixty days from the date of this notice. Any member of the proposed class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class.
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Contact Information:
Contact:
Jack Fruchter, Esq.
Arthur J. Chen, Esq.
Abraham, Fruchter & Twersky, LLP
One Penn Plaza, Suite 2805
New York, New York 10119
Tel.: (212) 279-5050