VaxGen Inc. - Securities Class Action

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Copyright (c) 2001
Stanford Law School

VaxGen Inc. Conclusion: According to a press release dated April 11, 2005, VaxGen, Inc. announced that the United States District Court for the Northern District of California has entered an Order dismissing the Amended Complaint in In re VaxGen, Inc. Securities Litigation, No. C 03-01129 JSW without prejudice to plaintiffs' filing a further amended Complaint. Separately, the Company also announced that the California Superior Court for San Mateo County has scheduled a hearing for April 29, 2005 to consider a proposed settlement in a related shareholders' derivative lawsuit, captioned In re VaxGen, Inc. Derivative Litigation, No. CIV 430087. Both lawsuits relate to certain public disclosures concerning an experimental AIDS vaccine that the Company is no longer developing. By Order dated March 30, 2005, the Federal District Court granted defendants' motion to dismiss the Amended Class Action Complaint, but afforded plaintiffs another chance to amend their Complaint. VaxGen does not know whether plaintiffs will attempt to further amend their Complaint.

The original complaint charges VaxGen and certain of its officers and directors with violations of the Securities Exchange Act of 1934. VaxGen is engaged in the development and commercialization of AIDSVAX, a vaccine designed to prevent infection or disease caused by HIV (Human Immunodeficiency Virus), the virus that causes AIDS. During the Class Period, defendants were completing the final stages of AIDSVAX's Phase III clinical trials required to obtain Food and Drug Administration approval to market AIDSVAX as an AIDS vaccine. Throughout the Class Period, defendants caused VaxGen to make a number of positive statements about the status of the trial and describing their eventual plans to manufacture and market AIDSVAX, causing VaxGen's stock to trade at artificially inflated prices. On February 23, 2003, VaxGen shocked the market by reporting the long-anticipated results of the U.S. trials, disclosing that the "study did not show a statistically significant reduction of HIV infection within the study population as a whole, which was the primary endpoint of the trial." The partial disclosure of the overall failure of the U.S. clinical trial caused VaxGen's shares to plummet, declining over 50% to approximately $3 per share on Feb. 24, 2003. However, even when defendants released the results on Feb. 24, 2003, they claimed that while the vaccine failed to demonstrate efficacy on U.S. caucasians, the trials had demonstrated 30%-84% efficacy rates in U.S. blacks and Asians. That analysis, the company said, had less than a 1% chance of being due to random chance, making it highly statistically significant. The VaxGen president touted the results as evidence that AIDSVAX could protect against HIV infection. As reported by The Wall Street Journal on Feb. 24, 2003, the "results overall won't lead the Food and Drug Administration to approve the vaccine for use in the wider public, but the company hopes that further analysis, as well as results from another trial being conducted in Thailand on injection drug users, may prompt the agency to approve the vaccine for some ethnic minorities." These corrective statements had their intended effect and VaxGen's stock closed at close to $7 per share on Feb. 24, 2003. However, on Feb. 26, 2003, defendants were forced to admit that the reliability of their earlier reports of higher efficacy rates for non-caucasians were impaired because they had not taken the requisite "penalties" to account for the fact that less than 500 of the 5000 clinical trial participants were non-caucasians, resulting in an extremely small subset of data being analyzed for non-caucasians. As the news that earlier promises that AIDSVAX could prove useful for non-caucasians fell apart, the stock declined further, resulting in a total loss in market cap since Nov. 18, 2002 of approximately 85%.

INDUSTRY CLASSIFICATION:
SIC Code: 2834
Sector: Healthcare
Industry: Biotechnology & Drugs

COMPANY/ISSUER NAME:	VaxGen Inc.
COMPANY/ISSUER TICKER:	VXGN
COMPANY WEBSITE:	http://www.vaxgen.com

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Janice Whitkens, et al. v. VaxGen, Inc., et al.

COURT: N.D. California	DOCKET NUMBER: 03-CV-01129
JUDGE NAME: Hon. Jeffrey S. White
DATE FILED: 03/17/2003	SOURCE: Business Wires
CLASS PERIOD START: 08/06/2002	CLASS PERIOD END: 02/26/2003
TYPE OF COMPLAINT: Unamended/Unconsolidated
PLAINTIFF FIRMS IN THIS OR SIMILAR CASE:
Bernstein Liebhard & Lifshitz LLP (New York, NY) 10 E. 40th Street, 22nd Floor, New York, NY, 10016 (voice) 800.217.1522, (fax) , info@bernlieb.com Brodsky & Smith, LLC 11 Bala Avenue, Suite 39, Bala Cynwyd, PA, 19004 (voice) 610.668.7987., (fax) 610.660.0450, esmith@Brodsky-Smith.com Cauley Geller Bowman Coates & Rudman, LLP (New York) 200 Broadhollow, Suite 406, Melville, NY, 11747 (voice) 631.367.7100, (fax) 631.367.1173, Johnson & Perkinson 1690 Williston Road, South Burlington, VT, 05403 (voice) 802.862.0030, (fax) 802.862.0060, JPLAW@adelphia.net Law Offices of Charles J. Piven, P.A. World Trade Center-Baltimore,401 East Pratt Suite 2525, Baltimore, MD, 21202 (voice) 410.332.0030, (fax) , pivenlaw@erols.com Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA) 600 West Broadway, 1800 One America Plaza, San Diego, CA, 92101 (voice) 800.449.4900, (fax) , support@milberg.com Much Shelist Freed Denenberg Ament & Rubenstein, PC , Chicago, IL, (voice) 800-470-6824, (fax) 312-621-1750, Scott & Scott LLC P.O. Box 192, 108 Norwich Avenue, Colchester, CT, 06415 (voice) 860.537.5537, (fax) 860.537.4432, scottlaw@scott-scott.com Vianale & Vianale LLP The Plaza - Suite 801, 5355 Town Center Road., Boca Raton, FL, 33486 (voice) 561.391.4900, (fax) 561.368.9274, info@vianalelaw.com Wechsler Harwood LLP 488 Madison Avenue 8th Floor, New York, NY, 10022 (voice) 212.935.7400, (fax) , info@whhf.com Wolf Haldenstein Adler Freeman & Herz LLP 270 Madison Avenue, New York, NY, 10016 (voice) 212.545.4600, (fax) 212.686.0114, newyork@whafh.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 11

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Class Action Complaint for Violation of Federal Securities Laws - Demand for Jury Trial
Type: Complaint		Date on the document: 03/17/2003
Declaration Of Jennifer R. Williams In Support Of Motion Of The Rosenthal Group For Appointment Of Lead Plaintiff And Lead Counsel
Type: Declaration		Date on the document: 05/16/2003
Declaration Of Luke O. Brooks In Support Of The Carpenters Pension Fund Of Illinois' Motion For Appointment As Lead Plaintiff And Approval Of Selection Of Lead Counsel
Type: Declaration		Date on the document: 05/16/2003
Exhibit A
Type: Other		Date on the document: 05/16/2003
Memorandum Of Points And Authorities In Support Of Motion Of The Ronsenthal Group For Appointment Of Lead Plaintiff And Lead Counsel
Type: Other		Date on the document: 05/16/2003
Notice Of Motion And Motion Of The Rosenthal Group For Appointment Of Lead Plaintiff And Lead Counsel
Type: Notice		Date on the document: 05/16/2003
[Proposed] Order Granting Motion Of The Rosenthal Group For Appointment Of Lead Plaintiff And Lead Counsel
Type: Order		Date on the document: 06/20/2003

REFERENCE COMPLAINT

In re Vaxgen, Inc. Securities Litigation

COURT: N.D. California	DOCKET NUMBER: 03-CV-01129
JUDGE NAME: Hon. Jeffrey S. White
DATE FILED: 05/14/2004	SOURCE: Business Wires
CLASS PERIOD START: 08/06/2002	CLASS PERIOD END: 02/26/2003
TYPE OF COMPLAINT: Consolidated and/or Amended
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Cauley Geller Bowman Coates & Rudman, LLP (New York) 200 Broadhollow, Suite 406, Melville, NY, 11747 (voice) 631.367.7100, (fax) 631.367.1173, Green & Jigarjian LLP 235 Pine Street, 15th Floor, San Francisco, CA, 94104 (voice) 415.477.6700, (fax) 415.477.6710, Schiffrin & Barroway LLP 3 Bala Plaza E, Bala Cynwyd, PA, 19004 (voice) 610.667.7706, (fax) 610.667.7056, info@sbclasslaw.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 3

DOCUMENTS FOR THE REFERENCE COMPLAINT
Declaration Of Darren J. Check In Support Of Motion To Appoint Theodore Williams As Lead Plaintiff And To Approve Plaintiff’s Choice Of Counsel
Type: Declaration		Date on the document: 05/16/2003
Memorandum Of Points And Authorities In Support Of Motion To Appoint Theodore Williams As Lead Plaintiff And For Appointment Of Lead Counsel
Type: Other		Date on the document: 05/16/2003
Motion To Appoint Theodore Williams As Lead Plaintiff And For Appointment Of Lead Counsel
Type: Motion		Date on the document: 05/16/2003
Notice Of Hearing On Motion To Appoint Theodore Williams As Lead Plaintiff And For Appointment Of Lead Counsel
Type: Notice		Date on the document: 05/16/2003
Proof Of Service
Type: Other		Date on the document: 05/16/2003
[Proposed] Order Appointing Theodore Williams As Lead Plaintiff And Appointing Lead Counsel
Type: Order		Date on the document: 05/16/2003
Certifications Of Andrew L. Barroway, Stuart L. Berman and Darren J. Check Pursuant To Local Rule 3-7(D)
Type: Other		Date on the document: 05/20/2003
Certifications Of Robert S. Green And Robert A. Jigarjian Pursuant To Local Rule 3-7(D)
Type: Other		Date on the document: 05/20/2003
Certifications Of Samuel H. Rudman And David A. Rosenfeld Pursuant To Local Rule 3-7(D)
Type: Other		Date on the document: 05/20/2003
Proof Of Service
Type: Other		Date on the document: 05/23/2003
The Carpenters Pension Fund Of Illinois' Memorandum In Reply To Competing Lead Plaintiff Motions
Type: Other		Date on the document: 09/05/2003
Application For Admission Of Attorney Pro Hac Vice
Type: Other		Date on the document: 09/15/2003
Consolidated Amended Class Action Complaint For Violations Of The Federal Securities Laws
Type: Complaint		Date on the document: 05/14/2004
Consolidated Amended Class Action Complaint for Violations of the Federal Securities Laws - Demand for Jury Trial
Type: Complaint		Date on the document: 05/14/2004
Notice Of Entry Of Orders
Type: Notice		Date on the document: 06/07/2004
Amended Proof Of Service
Type: Other		Date on the document: 06/08/2004
Declaration Of William S. Freeman In Support Of Defendants’ Request For Judicial Notice
Type: Declaration		Date on the document: 06/28/2004
Defendants’ Notice Of Motion And Motion To Dismiss Consolidated Amended Class Action Complaint For Violations Of The Federal Securities Laws; Memorandum Of Points And Authorities
Type: Notice		Date on the document: 06/28/2004
Defendants’ Request For Judicial Notice In Support Of Their Motion To Dismiss Consolidated Amended Class Action Complaint For Violations Of The Federal Securities Laws
Type: Other		Date on the document: 06/28/2004
Proof Of Service – Lee
Type: Other		Date on the document: 06/28/2004
Proof Of Service – Santamaria
Type: Other		Date on the document: 06/28/2004
[Proposed] Order Granting Defendants’ Motion To Dismiss Consolidated Amended Class Action Complaint And Granting Defendants’ Request For Judicial Notice
Type: Order		Date on the document: 06/28/2004
Amended Proof Of Service – Lee
Type: Other		Date on the document: 06/29/2004
Corrected Declaration Of William S. Freeman In Support Of Defendants’ Request For Judicial Notice
Type: Declaration		Date on the document: 06/29/2004
Defendants’ Re-Notice Of Motion To Dismiss Consolidated Amended Class Action Complaint For Violation Of The Federal Securities Laws
Type: Notice		Date on the document: 06/29/2004
Proof Of Service – Santamaria
Type: Other		Date on the document: 06/29/2004
Plaintiffs' Memorandum of Points and Authorities in Opposition to Defendants' Motion to Dismiss Consolidated Amended Class Action Complaint for Violations of the Federal Securities Laws
Type: Other		Date on the document: 08/09/2004
Defendants' Reply Memorandum in Support of Motion to Dismiss
Type: Other		Date on the document: 09/03/2004
Proof of Service (Plaintiffs)
Type: Other		Date on the document: 09/03/2004
Proof of Service (Stanford Securities Website)
Type: Other		Date on the document: 09/03/2004
Statement Of Recent Decision In Support Of Plaintiffs’ Opposition To Defendants’ Motion To Dismiss Second Amended Complaint
Type: Other		Date on the document: 09/10/2004
Notice of Change of Address
Type: Notice		Date on the document: 10/29/2004
U.S. District Court Civil Docket
Type: Docket		Date on the document: 02/25/2005
Order Granting Defendants' Motion To Dismiss Consolidated Amended Class Action Complaint With Leave To Amend
Type: Order		Date on the document: 03/30/2005
Order of Dismissal
Type: Order		Date on the document: 05/02/2005
U.S. District Court Civil Docket
Type: Docket		Date on the document: 05/02/2005

OTHER DOCUMENTS
Class Action Complaint For Violation Of Federal Securities Laws
Case Name and/or Number: Campagnuola
Type: Complaint		Date on the document: 03/19/2003
Certification By Lawyer Seeking To Serve As Class Counsel [Local Rule 3-7(D)] – Bottini, Jr.
Case Name and/or Number: Baker
Type: Other		Date on the document: 03/25/2003
Certification By Lawyer Seeking To Serve As Class Counsel [Local Rule 3-7(D)] – Gregorek
Case Name and/or Number: Baker
Type: Other		Date on the document: 03/25/2003
Certification By Lawyer Seeking To Serve As Class Counsel [Local Rule 3-7(D)] – Manifold
Case Name and/or Number: Baker
Type: Other		Date on the document: 03/25/2003
Certification By Lawyer Seeking To Serve As Class Counsel [Local Rule 3-7(D)] – Rickert
Case Name and/or Number: Baker
Type: Other		Date on the document: 03/25/2003
Complaint For Violations Of The Federal Securities Laws
Case Name and/or Number: Beda
Type: Complaint		Date on the document: 03/25/2003
Complaint For Violations Of The Federal Securities Laws
Case Name and/or Number: Braun
Type: Complaint		Date on the document: 03/25/2003
Certification Of Interested Entities Or Persons
Case Name and/or Number: Baker
Type: Other		Date on the document: 03/26/2003
Complaint For Violation Of The Federal Securities Laws
Case Name and/or Number: Baker
Type: Complaint		Date on the document: 03/26/2003
Complaint For Violations Of The Federal Securities Laws
Case Name and/or Number: Taddeo
Type: Complaint		Date on the document: 03/27/2003
Class Action Complaint For Violation Of Federal Securities Laws
Case Name and/or Number: Rosenthal
Type: Complaint		Date on the document: 04/22/2003
Complaint For Violations Of The Federal Securities Laws
Case Name and/or Number: Huffman
Type: Complaint		Date on the document: 04/23/2003
Complaint For Violations Of The Federal Securities Laws
Case Name and/or Number: Varon
Type: Complaint		Date on the document: 05/06/2003
Complaint For Violations Of The Federal Securities Laws
Case Name and/or Number: Carpenters Pension Fund Of Illinois
Type: Complaint		Date on the document: 05/15/2003

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