SOURCE: Abraham Fruchter & Twersky LLP

October 12, 2005 10:54 ET

Abraham Fruchter & Twersky LLP Files Class Action Suit Against Barrier Therapeutics Inc.

NEW YORK, NY -- (MARKET WIRE) -- October 12, 2005 -- Abraham Fruchter & Twersky LLP today announced that a class action lawsuit has been commenced in the United States District Court for the District of New Jersey on behalf of purchasers of Barrier Therapeutics Inc. ("Barrier" or the "Company") (NASDAQ: BTRX) common stock during the period between April 29, 2004, and June 29, 2005, inclusive (the "Class Period").

If you wish to serve as lead plaintiff, you must meet certain legal requirements set forth in the applicable law and file appropriate papers with the Court by July 18, 2005. You do not need to seek appointment as a lead plaintiff in order to share in any recovery. Under certain circumstances, one or more Class members may together serve as lead plaintiff. You may retain Abraham, Fruchter & Twersky, LLP, or other counsel of your choice, to serve as your counsel in this action or you may choose to do nothing and remain an absent class member. If you have any questions concerning this case or your rights or interests with respect to this matter, please contact plaintiff's counsel: Jack G. Fruchter, Esq. or Ximena Skovron, Esq. of Abraham, Fruchter & Twersky, LLP, One Penn Plaza, Suite 2805, New York, New York 10119, by telephone at (212) 279-5050 or toll free at (800) 440-8986, by facsimile at (212) 279-3655, or by e-mail at jfruchter@aftlaw.com or xskovron@aftlaw.com.

The complaint charges Barrier and certain of its officers and directors with violations of the Securities Act of 1933 and Securities Exchange Act of 1934. Barrier is a biopharmaceutical company, engaged in the discovery, development, and commercialization of pharmaceutical products in the field of dermatology. The complaint alleges that Barrier made a series of materially false and misleading statements concerning the Company's business and products under development. In particular, the Complaint alleges that these statements were materially false and misleading because they failed to disclose and misrepresented the following adverse facts: (i) that the Company had failed to perform its clinical trials in conformity with FDA guidelines as they had failed to disclose that they had secretly substituted the petroleum base within Zimycan, the effect of which was to substantially lessen the likelihood that the drug could achieve FDA approval; (ii) that Hyphanox did not have a better safety or efficacy profile than fluconazole/Diflucan and, in fact, as investors ultimately learned, Hyphanox was significantly less effective than fluconazole/Diflucan; and (iii) as a result of the foregoing, defendants lacked any reasonable basis for their positive statements about Barrier.

On June 29, 2005, Barrier shocked the market when it announced, among other adverse facts, that the Company's drug trials failed to demonstrate that Hyphanox worked as well as fluconazole. In response to this announcement, the price of Barrier stock plummeted over $6.75 per share -- a decline of over 45% -- to below $8.00 per share on extremely heavy trading volume.

Plaintiff seeks to recover damages on behalf of all purchasers of publicly traded securities of Barrier during the Class Period (the "Class"). The plaintiff is represented by Abraham Fruchter & Twersky LLP, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Contact Information

  • Jack G. Fruchter, Esq.
    Abraham Fruchter & Twersky LLP
    (212) 279-5050
    (800) 440-8986 toll free
    (212) 279-3655 fax
    Email Contact

    Ximena Skovron, Esq.
    Abraham Fruchter & Twersky LLP
    (212) 279-5050
    (800) 440-8986 toll free
    (212) 279-3655 fax
    Email Contact