SOURCE: Stull, Stull & Brody

October 31, 2005 17:57 ET

Stull, Stull & Brody Announces Class Action on Behalf of Shareholders of Barrier Therapeutics, Inc.

NEW YORK, NY -- (MARKET WIRE) -- October 31, 2005 -- Notice is hereby given that a class action has been commenced in the United States District Court for the District of New Jersey on behalf of all persons who purchased the common stock of Barrier Therapeutics, Inc. ("Barrier" or the "Company") (NASDAQ: BTRX) between April 29, 2004 and June 29, 2005 (the "Class Period"). Also included are those who purchased Barrier pursuant and/or traceable to the Company's Initial Public Offering ("IPO") on or about April 29, 2004 in its Secondary Offering on or about February 9, 2005.

Stull, Stull & Brody has substantial experience representing employees who suffered losses from purchases of their employer's stock in their 401(k) plans. If you bought Barrier Therapeutics' stock through your Barrier Therapeutics retirement account and have information or would like to learn more about these claims, please contact us.

The complaint alleges that Barrier violated federal securities laws by issuing a series of materially false and misleading statements concerning the Company's business and products under development. Specifically, defendants failed to disclose and misrepresented the following adverse facts: (i) that the Company had failed to perform its clinical trials in conformity with FDA guidelines as they had failed to disclose that they had secretly substituted the petroleum base within Zimycan, the effect of which was to substantially lessen the likelihood that the drug could achieve FDA approval; (ii) that Hyphanox did not have a better safety or efficacy profile than fluconazole/Diflucan and, in fact, as investors ultimately learned, Hyphanox was significantly less effective than fluconazole/Diflucan; and (iii) as a result of the foregoing, defendants lacked any reasonable basis for their positive statements.

On June 29, 2005, Barrier announced, among other adverse facts, that the Company's drug trials failed to demonstrate that Hyphanox worked as well as fluconazole. On this news, the price of Barrier stock plummeted over $6.75 per share, a decline of over 45%, to close below $8.00 per share on June 30, 2005.

If you are a member of the class, you may, no later than December 12, 2005, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." 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 Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action. Stull, Stull & Brody has litigated many class actions for violations of securities laws in federal courts over the past 30 years and has obtained court approval of substantial settlements on numerous occasions. Stull, Stull & Brody maintains offices in both New York and Los Angeles.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Tzivia Brody, Esq. at Stull, Stull & Brody by e-mail at SSBNY@aol.com, by calling toll-free 1-800-337-4983, or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. You can also visit our website at www.ssbny.com.

Contact Information

  • Contact:

    Tzivia Brody, Esq.
    Stull, Stull & Brody
    1-800-337-4983
    fax 212/490-2022
    Email Contact