SOURCE: Izard Nobel LLP

September 23, 2010 16:47 ET

Izard Nobel LLP Announces Class Action Lawsuit Against Arena Pharmaceuticals, Inc.

WEST HARTFORD, CT--(Marketwire - September 23, 2010) -  The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of California on behalf of purchasers of the common stock of Arena Pharmaceuticals, Inc. ("Arena" or the "Company") (NASDAQ: ARNA) between December 8, 2008 and September 16, 2010 (the "Class Period").

The Complaint charges that Arena and certain of its officers and directors violated federal securities laws by making materially false statements regarding the Company's principal drug, Lorcaserin. Defendants continuously hyped Lorcaserin's combination of efficacy, safety and tolerability without disclosing certain health risks associated with the drug. As a result, Arena's stock traded at artificially inflated prices during the Class Period, reaching a high of $7.95 per share on July 30, 2010.

On September 14, 2010, the Food and Drug Administration ("FDA") issued a briefing document in advance of its advisory panel meeting questioning both the safety and efficacy of Lorcaserin. On this news, price of Arena common stock fell $2.72 to close at $4.13 per share. Then, on September 16, 2010, the FDA advisory panel rejected approval of Lorcaserin, due to results of rat carcinogenicity studies and the modest therapeutic benefits associated with Lorcaserin. On this news, Arena's stock fell another $1.75 per share to close at $1.99 per share on September 17, 2010.

If you are a member of the class, you may, no later than November 19, 2010, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit: www.izardnobel.com/arena/, or contact Izard Nobel LLP toll-free: (800) 797-5499, or by e-mail: firm@izardnobel.com. For more information about class action cases in general, please visit our website: www.izardnobel.com.

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