Robbins Umeda LLP* Announces Class Action Suit Against BioSante Pharmaceuticals, Inc.
February 6, 2012 (San Diego, CA) – Robbins Umeda LLP announces that the firm commenced a class action lawsuit on February 3, 2012 in the U.S. District Court for the Northern District of Illinois, Eastern Division, on behalf of all persons or entities who purchased or otherwise acquired the securities of BioSante Pharmaceuticals, Inc. (“BioSante” or the “Company”) (NASDAQ: BPAX) between February 12, 2010 and December 15, 2011 (the “Class Period”). The action is against the Company and the Company’s Chief Executive Officer for violations of the Securities and Exchange Act of 1934.
BioSante Pharmaceuticals is a specialty pharmaceutical Company focused on developing products for female sexual health and oncology. Over the last decade, BioSante has been in the process of developing LibiGel, a drug designed to improve the sex drive of women suffering from female sexual dysfunction, specifically hypoactive desire disorder.
The complaint alleges that beginning on February 12, 2010, the Company, along with its Chief Executive Officer, issued a series of materially false and misleading statements to investors about LibiGel’s commercial viability, effectiveness, and market potential that caused shares of BioSante to trade at artificially high prices. Specifically, it is alleged that officials at BioSante boasted that clinical data demonstrated that LibiGel had a “statistically significant” effect on female patients treated with the product, and that LibiGel was “the most clinically advanced pharmaceutical product in the U.S.” Additionally, it is alleged that BioSante and its Chief Executive Officer misled investors by routinely analogizing LibiGel’s market potential to the $2 billion dollar market for male erectile drugs, often comparing LibiGel to products like “Viagra, Levitra, and Cialis.”
On December 14, 2011, BioSante issued a press release disclosing for the first time that LibiGel failed to yield positive results in large-scale efficacy tests designed by the Company. According to study results, women treated with LibiGel did not experience statistically significant increases in either total satisfying sexual encounters or sexual desire. On this news, shares of BioSante declined by over 75% of their value. After trading as high as $2.52 on December 13, 2011, shares of BioSante closed on December 19, 2011, at just $0.38 per share.
If you purchased or otherwise acquired BioSante stock during the Class Period and wish to serve as lead plaintiff, you must move the Court no later than 60 days from February 6, 2012. To discuss this action or have any questions concerning this notice or your rights or interests, please contact Gregory E. Del Gaizo, Esq. of Robbins Umeda LLP at 800-350-6003 or via the shareholder information form.
Robbins Umeda LLP represents individual and institutional shareholders in derivative, direct, and class action lawsuits. The law firm’s skilled litigation teams include former federal prosecutors, former defense counsel from top multinational corporate law firms, and career shareholder rights attorneys. Robbins Umeda LLP has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
* The firm name changed from Robbins Umeda LLP to Robbins Arroyo LLP on January 1, 2013.