|  | | 2008 News and Press Releases | | |
SETTLEMENT NEWS:
Allos Therapeutics: Reaches $2M Deal In Colorado Securities Suit
Staff Writer
Classactionreporter.com. August 18, 2008
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EXCERPT: Allos Therapeutics Inc. reached a $2-million settlement in a securities class action lawsuit filed in Colorado against the company and one of its former officers. The suit was filed in the U.S. District Court for the District of Colorado in May 2004. The complaint was then amended in August 2004. It was brought on behalf of a purported class of purchasers of the company's securities during the period from May 29, 2003, to April 29, 2004. The plaintiffs are seeking unspecified damages relating to the issuance of allegedly false and misleading statements regarding the cancer drug EFAPROXYN during the class period and subsequent declines in the company's stock price. On Oct. 20, 2005, the District Court granted the defendants' motion to dismiss the lawsuit with prejudice. In an opinion dated Oct. 20, 2005, the District Court concluded that the plaintiffs' complaint failed to meet the legal requirements applicable to its alleged claims. On Nov. 20, 2005, the plaintiffs appealed the District Court's decision to the U.S. Court of Appeals for the 10th Circuit. In October 2006, the parties held talks to settle the matter, and on Feb. 6, 2008, they signed a stipulation of settlement, resolving the case for $2,000,000. The Court of Appeals accordingly has remanded the case to the District Court for consideration of the settlement. The settlement is subject to various conditions, including without limitation, approval of the District Court. The company reported no further development in the matter in its Aug. 5, 2008 Form 10-Q filing with U.S. Securities and Exchange Commission for the quarter ended June 30, 2008. The suit is "Noble Asset Mgmt LLC v. Allos Therapeutics, et al., Case No. 1:04-cv-01030 RPM," filed in the U.S. District Court for the District of Colorado, Judge Richard P. Matsch, presiding. |
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