SOURCE: Sarraf Gentile LLP

September 21, 2010 12:50 ET

Sarraf Gentile LLP Files Securities Class Action Against Arena Pharmaceuticals, Inc.

NEW YORK, NY--(Marketwire - September 21, 2010) -  On September 21, 2010, the law firm of Sarraf Gentile LLP commenced a securities fraud class action lawsuit on behalf of those investors who acquired the securities of Arena Pharmaceuticals, Inc. ("Arena" or the "Company") (NASDAQ: ARNA) during the period March 30, 2009 to September 17, 2010, inclusive (the "Class Period"). The lawsuit is pending in the United States District Court for the Southern District of California and names as defendants Arena and certain of its top officers.

According to the complaint, the defendants made several statements during the Class Period about the Company's weight loss drug lorcaserin which were false and misleading because they omitted and failed to disclose that tests for lorcaserin indicated that the drug caused cancer in lab rats. When the results of the rat carcinogenicity studies became public on September 14, 2010, the Company's stock fell from a closing price of $6.85 on September 13, 2010, to a closing price of $4.13 on September 14, 2010, a one day drop of $2.72 or roughly 40%, according to the complaint. On September 16, 2010, the FDA's advisory committee held a meeting to review lorcaserin and, according to the complaint, rejected the drug in light of the concern that the potential risks of long-term use, including the risk of cancer, outweighed its benefit. As a result of this news, the Company's stock fell from a closing price of $3.74 on September 16, 2010 to a closing price of $1.99 on September 17, 2010, a one day drop of $1.75 or roughly 46%, according to the complaint.

Plaintiffs are represented by the law firm of Sarraf Gentile LLP, which has extensive experience in the prosecution of class actions on behalf of investors.

If you bought the securities of Arena between March 30, 2009 and September 17, 2010, you may, no later than November 19, 2010, move the Court to appoint you as lead plaintiff, a representative party that acts on behalf of other class members. The Court must determine whether the class member's claim is typical of other class members' claims, and whether the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Sarraf Gentile LLP or other counsel of your choice, to serve as your counsel in this action.

If you would like to participate in this action or would like additional information about the lawsuit, please contact Joseph Gentile at Sarraf Gentile LLP, 116 John Street, Suite 2310, New York, NY 10038 (telephone: 212-868-3610; e-mail: joseph@sarrafgentile.com). 

Contact Information