Case Page

 

Case Status:    SETTLED
On or around 09/13/2011 (Date of stipulation and/or agreement of settlement)

Filing Date: March 17, 2006

The complaint alleges that on or around February 22, 2006, a story in The Wall Street Journal reported that the data available to defendants from the ANH clinical trial, but not to the public, revealed that ten of 81 patients who received PolyHeme suffered a heart attack within seven days, and two of those died. The data further showed defendants that none of the 71 patients in the ANH clinical trial who received real blood were found to have suffered a heart attack. In the aftermath of receiving this data, defendants shut down the ANH clinical study in 2000 and kept this highly adverse data hidden from the public view. Defendants in a press release on February 22, 2006, responding to The Wall Street Journal article, did not dispute the data concerning the patient heart attacks and deaths from the ANH clinical trial. Rather, defendants admit that they did not publish the data concerning patient heart attacks and deaths, and defendant Gould stated in the press release that "(w)e believe that publishing the full data upon closing the study, would have shown that PolyHeme could not be isolated as the cause of the observed serious adverse events." The complaint charges defendants, Northfield Laboratories, Inc. and its Chairman and CEO, with violations of the Securities Exchange Act of 1934 and Securities Act of 1933.

The complaint further alleges that the market was stunned by the disclosure of the secret, adverse data from the long-closed ANH clinical trial and the market price of Northfield's common stock fell with the belated disclosures. On February 21, 2006, the day before the disclosure by The Wall Street Journal, Northfield's common stock closed at a price of $12.23 per share. On February 22, 2006, on extraordinary volume of more that 4.1 million shares, Northfield's common stock closed at a price of $11.64 per share. The price continued to drop as the market absorbed all of the news, including the announcement on February 24, 2006, by United States Senator Charles E. Grassley, Chairman of the U.S. Senate Finance Committee, that he has begun an inquiry into the matter.

On June 19, 2006, U.S. District Judge George M. Marovich approved the motion to consolidate cases and the motion to approve lead plaintiff and lead counsel. On July 17, 2006, the same day the Amended Complaint was filed, the lead plaintiff filed a motion to withdraw as lead plaintiff. On August 24, 2006 the Judge Marovich entered his order consolidating all related cases, appointing the Shield Plan as lead plaintiff and approving the Rosen Law Firm as lead counsel. The plaintiffs did not delay in filing a Consolidated Amended Class Action Complaint on September 8, 2006. On November 20, 2006, defendants filed their motions to dismiss. On September 25, 2007, Judge Marovich granted the defendants’ motions to dismiss without prejudice and with leave to amend. On November 20, 2007, the lead plaintiff filed a Consolidated Second Amended Class Action Complaint. On January 22, 2008, the defendants filed motions to dismiss the Consolidated Second Amended Class Action Complaint.

On September 23, 2008, Judge George M. Marovich denied the Defendants' two motions to dismiss. The parties soon after engaged in discovery proceedings. On April 1, 2009, the movant filed a motion to certify the class. On September 25, 2009, the movant also filed a motion to transfer the case, which was denied on November 10, 2009. On May 18, 2010, the motion to certify the class was denied.

On May 4, 2011, a movant filed a renewed motion to certify the class. The motion was withdrawn on August 23, 2011. A status hearing is set for October 11, 2011.

On September 13, 2011, an unopposed motion for preliminary approval of settlement and conditional certification of a class was filed. The proposed settlement is in the amount of $1,500,000 in cash.

COMPANY INFORMATION:

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

SECURITIES INFORMATION:

Ticker Symbol: NFLD
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: N.D. Illinois
DOCKET #: 06-CV-01493
JUDGE: Hon. George M. Marovich
DATE FILED: 03/17/2006
CLASS PERIOD START: 02/20/2004
CLASS PERIOD END: 02/21/2006
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berman DeValerio Pease Tabacco Burt & Pucillo (MA)
    One Liberty Square, Berman DeValerio Pease Tabacco Burt & Pucillo (MA), MA 02109
    617.542.8300 ·
  2. Brodsky & Smith, LLC (former Pennysylvania)
    11 Bala Avenue, Suite 39, Brodsky & Smith, LLC (former Pennysylvania), PA 19004
    610.668.7987 610.660.0450 · esmith@Brodsky-Smith.com
  3. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (Washington, DC)
    1100 New York Avenue, N.W., Suite 500, West Tower, Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (Washington, DC), DC 20005
    202.408.4600 202.408.4699 · lawinfo@cmht.com
  4. Federman & Sherwood (Oklahoma City)
    120 North Robinson, Suite 2720, Federman & Sherwood (Oklahoma City), OK 73102
    405-235-1560 · wfederman@aol.com
  5. Law Offices of Bernard M. Gross (Philadelphia) (former)
    1515 Locust Street, 2nd Floor, Law Offices of Bernard M. Gross (Philadelphia) (former), PA 19102
    215-561-3600 215-561-3000 · bmgross@bernardmgross.com
  6. 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
  7. Milberg Weiss Bershad & Schulman LLP (New York)
    One Pennsylvania Plaza, 49th Floor, Milberg Weiss Bershad & Schulman LLP (New York), NY 10119
    212.594.5300 212.868.1229 · info@milbergweiss.com
  8. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 · info@pomerantzlaw.com/
  9. Schatz & Nobel, P.C.
    330 Main Street, Schatz & Nobel, P.C., CT 06106
    800.797.5499 860.493.6290 · sn06106@AOL.com
  10. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  11. Scott & Scott LLC (Connecticut)
    P.O. Box 192, 108 Norwich Avenue, Scott & Scott LLC (Connecticut), CT 06415
    860.537.5537 860.537.4432 · scottlaw@scott-scott.com
  12. Shalov Stone & Bonner LLP (New York)
    485 Seventh Avenue, Suite 1000, Shalov Stone & Bonner LLP (New York), NY 10018
    212.239.4340 212.239.4310 · lawyer@lawssb.com
  13. Smith & Smith LLP
    3070 Bristol Pike, Suite 112, Smith & Smith LLP, PA 19020
    215.638.4847 215.638.4867 ·
  14. Spector, Roseman & Kodroff (Philadelphia)
    1818 Market Street; Suite 2500, Spector, Roseman & Kodroff (Philadelphia), PA 19103
    215.496.0300 215.496.6610 · classaction@srk-law.com
  15. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
  16. The Rosen Law Firm, P.A. (New York)
    350 Fifth Avenue, Suite 5508, The Rosen Law Firm, P.A. (New York), NY 10118
    212.686.1060 212.202.3827 · lrosen@rosenlegal.com
  17. Zwerling Schachter & Zwerling LLP
    845 Third Avenue, Zwerling Schachter & Zwerling LLP, NY 10022
    212-223-3900 212-371-5969 · inquiry@zsz.com
No Document Title Filing Date
COURT: N.D. Illinois
DOCKET #: 06-CV-01493
JUDGE: Hon. George M. Marovich
DATE FILED: 11/20/2007
CLASS PERIOD START: 03/19/2001
CLASS PERIOD END: 03/20/2006
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. The Rosen Law Firm, P.A. (New York)
    350 Fifth Avenue, Suite 5508, The Rosen Law Firm, P.A. (New York), NY 10118
    212.686.1060 212.202.3827 · lrosen@rosenlegal.com
No Document Title Filing Date
No Document Title Filing Date