Case Page

 

Case Status:    DISMISSED    
On or around 09/18/2007 (Date of order of final judgment)

Filing Date: September 26, 2006

According to a news release dated September 19, 2007, Encysive Pharmaceuticals (ENCY) announces that the US District Court for the Southern District of Texas has dismissed, with prejudice, the securities class action litigation originally filed in September 2006 against the company, four of its former officers and a current officer.

In November 2006, the Court granted the motion to consolidate several related actions under the lead case, 06cv3022. On March 20, 2007, the Court granted the motion to appoint Oppenheim Pramerica Asset Management S.A.R.L. as Lead Plaintiff and Motley Rice LLC as Lead Counsel. On May 21, 2007, the plaintiff filed a Consolidated Class Action Complaint, and on July 20, 2007, the defendants responded by filing a motion to dismiss the Consolidated Class Action Complaint.

The original complaint charges Encysive and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Encysive is a biopharmaceutical company focused on the discovery, development and commercialization of different synthetic small molecule compounds for the treatment of a range of cardiovascular, vascular and related inflammatory diseases.

The complaint alleges that throughout the Class Period Encysive made false and misleading statements regarding the success of Sitaxentan, or Thelin, a drug it was developing to treat Pulmonary Arterial Hypertension ("PAH"), and stated that it had completed Phase III development of Thelin. During the Class Period, defendants led shareholders and analysts to believe that FDA approval was imminent and that such approval would make Thelin a competitor to Acetelion Ltd.'s similar drug, Tracleer (Bosentan). However, after the Company completed two successful public offerings and the individual defendants received cash/stock awards based on the apparent success of Thelin, the Company's shareholders learned that defendants had been less than forthcoming with the true prospects for Thelin. On March 27, 2006, U.S. regulators delayed approving Thelin until they could get more data. The FDA sent the Company a letter asking for information and possibly more studies to determine if Thelin was safe and effective for use in treating PAH. On this news, Encysive shares fell 49%.

COMPANY INFORMATION:

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

SECURITIES INFORMATION:

Ticker Symbol: ENCY
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: S.D. Texas
DOCKET #: 06-CV-03022
JUDGE: Hon. Keith P. Ellison
DATE FILED: 09/26/2006
CLASS PERIOD START: 02/19/2004
CLASS PERIOD END: 03/24/2006
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Crowley Douglas & Norman, LLP
    1301 McKinney Street, Suite 3500, Crowley Douglas & Norman, LLP, TX 77010-3034
    713.651.1771 713.651.1771 ·
  2. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    655 West Broadway, Suite 1900, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 ·
No Document Title Filing Date
COURT: S.D. Texas
DOCKET #: 06-CV-03022
JUDGE: Hon. Keith P. Ellison
DATE FILED: 05/21/2007
CLASS PERIOD START: 02/19/2004
CLASS PERIOD END: 07/24/2006
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Motley Rice LLC (Atlanta)
    One Georgia Center; 600 West Peachtree Street, Suite 800, Motley Rice LLC (Atlanta), GA 30308
    1-800-768-4026 · inquiry@motleyrice.com
  2. Motley Rice LLC (Mount Pleasant)
    28 Bridgeside Boulevard, Motley Rice LLC (Mount Pleasant), SC 29464
    843.216.9000 843.216.9450 · inquiry@motleyrice.com
No Document Title Filing Date
No Document Title Filing Date