NEW YORK, April 12, 2013 (GLOBE NEWSWIRE) -- Scott+Scott, Attorneys at Law, LLP ("Scott+Scott") has filed a class action complaint in the United States District Court for the Southern District of New York on behalf of all persons who purchased or otherwise acquired the common stock of Wyeth (formerly NYSE:WYE) between July 21, 2008 and July 29, 2008, inclusive (the "Class Period"). The action seeks remedies under the Securities Exchange Act of 1934 (the "Exchange Act").
If you purchased Wyeth common stock during the Class Period and wish to serve as a lead plaintiff in the action, you must move the Court no later than June 11, 2013. Any member of the investor class may move the Court to serve as lead plaintiff through counsel of its choice or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have questions concerning this notice or your rights, please contact Scott+Scott (firstname.lastname@example.org, (800) 404-7770, (860) 537-5537) or visit the Scott+Scott website for more information. There is no cost or charge to you for contacting Scott+Scott.
The securities class action complaint alleges that CR Intrinsic Investors, LLC, together with its affiliates, including but not limited to SAC Capital Associates, LLC and SAC Capital Advisors, L.P. (collectively, "Defendants"), violated the securities laws by trading Wyeth shares based on material, non-public information ahead of a July 29, 2008 announcement disclosing disappointing clinical trial results for the drug bapineuzumab (AAB-001) ("bapi"). Bapi was an Alzheimer's disease treatment that was being jointly developed by Wyeth and Elan Corporation, plc.
On June 17, 2008, Wyeth released top-line summary results from the Phase 2 clinical trial of bapi. The market's reaction was favorable, and Wyeth's common stock rose 10.7% after the announcement. Detailed trial results were to be released at a conference on July 29, 2008.
Shortly before the July 29, 2008 conference, Defendants obtained material, non-public information, pursuant to which they learned that the final results from the bapi drug trials were a disappointment. Defendants began aggressively selling their positions in Wyeth, and over the seven trading days leading up to the July 29, 2008 announcement, Defendants completely liquidated their positions in Wyeth, worth over $335 million. In addition, Defendants opened large short positions in Wyeth.
On July 29, 2008, after the close of the U.S. securities markets, the detailed Phase II clinical results of bapi were presented. The results of the Phase II clinical trial were strongly and unexpectedly negative. On July 30, 2008, the next trading day, Wyeth's share price fell 41.8% from its prior close on July 29th.
In total, by trading on material, non-public information related to Wyeth during the week before the July 29th presentation, Defendants avoided approximately $40.4 million in losses on their long positions, and secured a $16 million profit from the short positions they opened during the same week. Conversely, it is alleged in the complaint that Plaintiff and other members of the Class suffered damages under the federal securities laws when they purchased Wyeth common stock during the Class Period.
Scott+Scott has significant experience prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide.
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Source: Scott+Scott LLP