SOURCE: Kaplan Fox & Kilsheimer LLP

December 05, 2005 17:47 ET

Kaplan Fox Seeks to Recover Losses for Investors Who Purchased Ciphergen Biosystems, Inc. Common Stock

NEW YORK, NY -- (MARKET WIRE) -- December 5, 2005 -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) has filed a class action suit in the United States District Court for the Northern District of California against Ciphergen Biosystems, Inc. ("Ciphergen" or the "Company") (NASDAQ: CIPHE) and certain of its officers and directors, on behalf of all persons or entities who purchased the publicly traded common stock of Ciphergen between August 8, 2005 and November 16, 2005 (the "Class Period").

The complaint alleges that during the Class Period, defendants violated Sections 10(b) and 20(a) of the Securities and Exchange Act of 1934 by publicly issuing a series of false and misleading statements regarding the Company's financial condition, thus causing Ciphergen's shares to trade at artificially inflated levels.

The complaint alleges that on November 16, 2005, Ciphergen disclosed, inter alia, that its Audit Committee had determined that the Company's previously reported results for the quarter-ended June 30, 2005 should no longer be relied upon and would need to be restated because revenue was recognized on certain transactions "in a manner inconsistent with the Company's revenue recognition policy." Indeed, the Company indicated that the restatement would reduce previously reported revenues for such quarter by $503,000 or 7% and result in an increase in the Company's previously reported net loss for such quarter by $301,000 or 3%. The Company also advised that the Audit Committee's investigation was not yet complete and that it was also "reviewing the appropriateness of revenue recognition in connection with certain transactions that took place in the fourth quarter of fiscal 2004 and in fiscal 2005."

On November 17, 2005, as a result of these disclosures, the complaint alleges that the price of Ciphergen common stock declined from a prior day close of $1.73 to close at $1.36 per share, a decline of approximately 21%, on unusually heavy volume.

If you are a member of the proposed Class, you may move the court no later than February 3, 2006 to serve as a lead plaintiff for the Class. You need not seek to become a lead plaintiff in order to share in any possible recovery.

Plaintiff seeks to recover damages on behalf of the Class and is represented by Kaplan Fox & Kilsheimer LLP. Our firm, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions and actions involving financial fraud. For more information about Kaplan Fox & Kilsheimer LLP, or to review a copy of the complaint filed in this action, you may visit our website at www.kaplanfox.com.

If you have any questions about this Notice, the action, your rights, or your interests, please e-mail us at mail@kaplanfox.com or contact:

Contact Information

  • Frederic S. Fox
    Joel B. Strauss
    Donald R. Hall
    Jeffrey P. Campisi
    KAPLAN FOX & KILSHEIMER LLP
    805 Third Avenue, 22nd Floor
    New York, New York 10022
    (800) 290-1952
    (212) 687-1980
    Fax: (212) 687-7714
    E-mail address: Email Contact

    Laurence D. King
    KAPLAN FOX & KILSHEIMER LLP
    555 Montgomery Street, Suite 1501
    San Francisco, California 94111
    (415) 772-4700
    Fax: 415-772-4707
    E-mail address: Email Contact