SOURCE: Brower Piven, A Professional Corporation

March 12, 2010 17:02 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $50,000 From Investment in Novelos Therapeutics, Inc. to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the May 4, 2010 Lead Plaintiff Deadline

STEVENSON, MD--(Marketwire - March 12, 2010) -  Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the District of Massachusetts on behalf of purchasers of the common stock of Novelos Therapeutics, Inc. ("Novelos" or the "Company") (OTCBB: NVLT) during the period between December 14, 2009 and February 24, 2010, inclusive (the "Class Period").

No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than May 4, 2010 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages or to serve as a Lead Plaintiff. You may contact Brower Piven (through hoffman@browerpiven.com or 410/415-6616) to answer any questions you may have in that regard.

Novelos is a biopharmaceutical company commercializing oxidized glutathione-based compounds for the treatment of cancer and hepatitis. The complaint charges Novelos and Harry S. Palmin ("Palmin"), the President, Chief Executive Officer and director of the Company, with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The complaint alleges that, during the Class Period, defendant Palmin made positive statements regarding the pivotal Phase 3 clinical trial of the Company's primary new drug candidate, NOV-002, which was being evaluated as a treatment for advanced non-small cell lung cancer when used in combination with first-line chemotherapy. Defendant Palmin stated, among other things, that the NOV-002 Phase 3 trial had lasted longer than anticipated because patients in the trial were living longer than the Company expected. The complaint further alleges that these statements were materially false and misleading because defendant Palmin knew, or recklessly disregarded, that the unexpected length of the trial could be and was caused by the survival times of the patients in the control arm of the study who did not receive NOV-002.

According to the complaint, on February 24, 2010, the Company announced that NOV-002 did not meet its primary endpoint of improvement in overall survival in the Phase 3 trial and that the trial's duration was longer than originally anticipated not because of NOV-002's efficacy, but because the patients in the control arm of the trial who did not receive NOV-002 lived longer than expected, the value of Novelos shares declined significantly.

If you have suffered a net loss for all transactions in Novelos Therapeutics, Inc. common stock during the Class Period, you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 40 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Stevenson, Maryland
    410/415-6616
    Email Contact