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Case Status:    SETTLED
On or around 09/24/2002 (Date of order of final judgment)

Filing Date: March 13, 2001

According to the FORM 10-Q for the quarterly period ended September 30, 2002, on September 23, 2002, following a hearing, the Court entered a final order approving the settlement and dismissing the action at which time Company's insurance carrier paid $2.0 million into escrow and the Company issued 1.7 million shares into escrow. The time to appeal has expired. As of December 31, 2001, the Company recorded the fair value of the 1.7 million shares of Common Stock of $7,837,000, as an increase to additional paid-in capital.

In March, April and May of 2001, eleven stockholder class actions were filed in the United States District Court for the Eastern District of Pennsylvania against the Company and certain of its officers and directors seeking unspecified damages. The lawsuits alleged that the Company and its officers made false and misleading statements about the Company's drug candidate, Aptosyn(R), which caused artificial inflation of the Company's stock price during the class period of October 27, 1999 to September 22, 2000, when the Company announced that the FDA had informed the Company that it would be receiving a "not approvable" letter for its new drug application for Aptosyn(R).

Specifically, the original complaint alleges, among other things, that in the clinical trials of Aptosyn in the treatment of FAP patients (1) representations that Aptosyn reduced polyp formation across the entire colorectum of FAP patients, when, in fact, the patients' colons had been surgically removed before the trials; (2) defendants' representations that treatment with Aptosyn caused regression of polyps, all of the patients polyps had been removed before the trials; and (3) defendants' representations that Aptosyn was a chemopreventive for FAP patients were misleading because less than one percent of adenomatous polyps become malignant, and, without complete regression of all colorectal polyps there is no evidence that reduction in polyps results in a decrease in colorectal cancer in FAP patients. The Complaint also alleges that defendants misrepresented the comparative toxicity of Aptosyn and competing drugs, and that defendants' representation that Aptosyn was an alternative to surgery for FAP patients was misleading.

The complaint further alleges, that on September 22, 2000, when CPI announced that the U.S. Food & Drug Administration ("FDA") refused to approve Aptosyn as a treatment for FAP, which occurs when the clinical trial evidence of the efficacy and safety of a drug is inadequate. In reaction, Cell Pathways' stock, which traded as high as $61 a share during the Class Period, quickly fell from nearly $21 a share to about $9 a share, a 70% drop in value.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Biotechnology & Drugs
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: CLPA
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: E.D. Pennsylvania
DOCKET #: 01-CV-01189
JUDGE: Hon. Mary A. McLaughlin
DATE FILED: 03/13/2001
CLASS PERIOD START: 10/27/1999
CLASS PERIOD END: 09/22/2000
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berger & Montague PC
    1622 Locust Street, Berger & Montague PC, PA 19103
    800.424.6690 215.875.4604 · investorprotect@bm.net
  2. Berman DeValerio Pease Tabacco Burt & Pucillo (MA)
    One Liberty Square, Berman DeValerio Pease Tabacco Burt & Pucillo (MA), MA 2109
    617.542.8300 617.230.0903 · info@bermanesq.com
  3. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  4. Cauley Geller Bowman Coates & Rudman, LLP (New York)
    200 Broadhollow, Suite 406, Cauley Geller Bowman Coates & Rudman, LLP (New York), NY 11747
    631.367.7100 631.367.1173 ·
  5. Cauley Geller, Bowman Coates & Rudman, LLP (Boca Raton, FL)
    One Boca Place. 2255 Glades Road, Suite 421A, Cauley Geller, Bowman Coates & Rudman, LLP (Boca Raton, FL), FL 33431
    561.750.3000 561.750.3364 ·
  6. Dreier, Bartiz & Federman LLP
    120 North Robinson, Suite 2720, Dreier, Bartiz & Federman LLP, OK 73102
    405.235.1560 · wfederman@aol.com
  7. Kirby McInerney & Squire LLP
    830 Third Avenue 10th Floor, Kirby McInerney & Squire LLP, NY 10022
    212.317.2300 ·
  8. Law Offices of Charles J. Piven, P.A.
    World Trade Center-Baltimore,401 East Pratt Suite 2525, Law Offices of Charles J. Piven, P.A., MD 21202
    410.332.0030 · pivenlaw@erols.com
  9. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  10. Wechsler Harwood LLP
    488 Madison Avenue 8th Floor, Wechsler Harwood LLP, NY 10022
    212.935.7400 · info@whhf.com
No Document Title Filing Date
COURT: E.D. Pennsylvania
DOCKET #: 01-CV-01189
JUDGE: Hon. Mary A. McLaughlin
DATE FILED: 09/10/2001
CLASS PERIOD START: 10/27/1999
CLASS PERIOD END: 09/22/2000
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berger & Montague PC
    1622 Locust Street, Berger & Montague PC, PA 19103
    800.424.6690 215.875.4604 · investorprotect@bm.net
  2. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
No Document Title Filing Date
No Document Title Filing Date