SOURCE: Bronstein, Gewirtz & Grossman, LLC

February 17, 2009 19:13 ET

Bronstein, Gewirtz & Grossman, LLC Announces That a Class Action Has Been Filed Against Rigel Pharmaceuticals, Inc.

NEW YORK, NY--(Marketwire - February 17, 2009) - Bronstein, Gewirtz & Grossman, LLC announces that a class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of those who purchased or otherwise acquired the securities of Rigel Pharmaceuticals, Inc. (NASDAQ: RIGL) ("Rigel" or the "Fund") between December 13, 2007 and October 27, 2008, inclusive (the "Class Period").

The complaint charges that Rigel and certain of its officers and directors violated federal securities laws. On December 13, 2007 defendants issued materially false and misleading statements about a clinical trial (the "Study") of a new drug, R788, for the treatment of rheumatoid arthritis. The Study involved 189 patients in the U.S. and Mexico. In response to the announcement of the summary result of the study, Rigel's common stock price more than tripled in one day, from $8 per share to $25.95. Then, on October 27, 2008, Rigel presented the full results of the Study at a meeting of the American College of Rheumatology and on an investor conference call. Those results contained adverse information omitted from the Company's December 13, 2007 statements. The disclosure of the Study's results caused Rigel's stock price to plunge 38% in a single day from $14.41 to $8.84.

The complaint alleges that Defendants failed to disclose the following: (a) patients in Mexico had higher response rates in both the placebo and treated arms than the U.S. patients, which may have contributed disproportionately to the overall reported benefit observed at the higher doses; (b) R788 caused an increase in average blood pressure which could signal an increase in cardiovascular risk, the mechanism that caused the increase was not well understood and the increase in blood pressure could be a stumbling block for some pharmaceuticals companies that were considering licensing the drug; and (c) patients in the Study taking R788 experienced increased in liver enzymes compared to patients taking the placebo.

No Class has yet been certified in the above action. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact either Peretz Bronstein or Eitan Kimelman of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email eitan@bgandg.com. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. April 7, 2009 is the deadline for investors to seek a lead plaintiff appointment.

Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate work, private securities offerings, and securities arbitration.

Contact Information

  • Peretz Bronstein or Eitan Kimelman
    Bronstein, Gewirtz & Grossman, LLC
    212-697-6484
    Email Contact