SOURCE: Schoengold Sporn Laitman & Lometti, P.C.

April 20, 2005 16:19 ET

Schoengold Sporn Laitman & Lometti, P.C. Announces Class Action Lawsuit Against Cell Therapeutics, Inc. (CTIC)

NEW YORK, NY -- (MARKET WIRE) -- April 20, 2005 -- Schoengold Sporn Laitman & Lometti, P.C. filed a class action lawsuit against Cell Therapeutics, Inc. ("CTIC" or the "Company") (NASDAQ: CTIC) and certain key officers and directors in the United States District Court for the Western District of Washington on behalf of all purchasers of CTIC securities during the period between June 7, 2004 and March 4, 2005 (the "Class Period"). If you purchased CTIC securities during the Class Period and would like to join the action pursuing securities claims against the Company and its officer and director defendants, you may do so by visiting Schoengold Sporn Laitman & Lometti's website at www.spornlaw.com or contacting Schoengold Sporn Laitman & Lometti, toll free at (866) 348-7700 or via e-mail at shareholderrelations@spornlaw.com. However, please note that the deadline to seek lead plaintiff status in this case expires May 9, 2005.

The complaint alleges that defendants' Class Period statements regarding XYOTAX, one of the Company's lung cancer drugs undergoing efficacy testing, were materially false and misleading for the following reasons: (1) contrary to the defendants' repeated representations that observed results of the study were positive and encouraging, the results in fact showed that XYOTAX would not meet its primary endpoint; (2) XYOTAX did not boost survival for non-small cell lung cancer any better than Taxol, a chemotherapeutic agent that had been on the market for years; (3) based on the results of the trial the Company would not be able to begin pre-launch activities and to position itself to submit a new drug application for XYOTAX in the foreseeable future. The complaint further alleges that defendants were motivated to commit the fraud alleged herein so that CTIC's private offering would yield more money for the Company than if the truth was known. On December 20, 2004, CTIC launched an "$18.4 Million Direct Equity Placement," selling approximately 2,586,000 shares of its common stock to institutional investors at a negotiated price per share of $7.10. In addition, during the Class Period, defendant Bianco sold 39,625 shares at artificially inflated prices for proceeds of $300,877.

On March 7, 2005, prior to the opening of the market, CTIC issued a press release announcing that XYOTAX failed to meet the endpoint of the STELLAR 3 Pivotal Trial, which had been touted throughout the Class Period. The study showed that XYOTAX was no better at boosting cancer survival than existing chemotherapy agents. In reaction to this announcement, CTIC shares fell $4.75 per share or 47.5%, on March 7, 2005, to close at $5.25 per share.

If you purchased CTIC securities during the Class Period and either sold those securities at a loss or still hold them, you may request that the Court appoint you as a lead plaintiff. However, you must do so before May 9, 2005.

Schoengold Sporn Laitman & Lometti was established in 1962 and has specialized in securities fraud litigation for over 35 years. The firm was cited by the Wall Street Journal in a study of the largest recoveries, as a percentage of overall damages, for its recoveries in the Anadigics and Versatility cases, which ranked first and third for recovering 44% and 30%, respectively, of plaintiffs' overall losses. Most recently, in 2004, the firm recovered $40 million for a class of Nicor, Inc. shareholders, representing approximately 35% of recoverable damages.

If you would like to further discuss your rights, you may call collect or otherwise contact the undersigned, who will be pleased to assist:

Contact Information

  • CONTACT:
    Jay P. Saltzman, Esq.
    Frank R. Schirripa, Esq.
    Schoengold Sporn Laitman & Lometti, P.C.
    19 Fulton Street, Suite 406
    New York, New York 10038
    Tel: (212) 964-0046
    Fax: (212) 267-8137
    Toll Free: (866) 348-7700
    E-Mail: shareholderrelations@spornlaw.com
    Website: www.spornlaw.com