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Today, we would like to focus on four situations of interest:
Encysive Pharmaceuticals, Inc. (NASDAQ: ENCY), Meade
Instruments Corp. (NASDAQ: MEAD), Connetics Corp.
(NASDAQ: CNCT), and Aspen Technology Inc. (AZPN).
It is alleged that 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.
Shareholders and analysts were led 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, 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%. It appears that investors
who purchased Encysive Pharmaceuticals between February 19, 2004
and March 24, 2006, are affected.
Investors, at yet another company, are hurt by revelations of
backdated options. This time, the affected company is Meade
Instruments Corp. It is alleged that the Company’s options were
backdated so their exercise price correlated to a day on or near
the day Meade's stock hit its low price for the year, or directly in
advance of sharp increases in the price of Meade stock.
As the truth concerning Meade's practice of backdating option
grants gradually became known to the market from a variety of
sources, the price of Meade's stock fell $0.70, or 25%, between
May 22, 2006 and August 29, 2006. It is alleged that investors
who purchased Meade Instruments between September 27, 2001
and August 29, 2006, are affected.
Palo Alto-based Connetics Corp., a specialty pharmaceutical
company, engages in the development and commercialization
of products for the medical dermatology market. It is alleged that
the Company made false statements about its most important
new drug (Velac) concerning findings that would likely prevent
FDA approval. On May 3, 2006, Connetics announced it could
not file its quarterly report on time due to a restatement of its
financial results. Investors who purchased CNCT between
June 6, 2004 and May 3, 2006, are affected.
Aspen Technology, Inc. provides software and professional
services that enable process companies to model, manage,
and control their operations.
On September 6, 2006, after the close of trading, Aspen
disclosed, among other things, that a subcommittee of
independent directors concluded that errors were made in the
accounting for certain historical stock options granted during
and prior to fiscal 2004, and previously issued financial
statements will require restatement as a result of these errors.
The Company also disclosed that certain of the Company's
previously issued financial statements and the related reports
of its independent registered public accounting firm should not
be relied upon. Not surprising, Aspen shares dropped the
following day. It appears that investors who purchased Aspen
between February 8, 2006 and September 6, 2006 are affected.
If you are an affected shareholder in Encysive Pharmaceuticals, Inc.,
Meade Instruments, Connetics Corp., Aspen Technology Inc.
or any of the companies listed below (details available at
www.securitiessleuth.com), you may wish to contact us at
info@securitiessleuth.com or 877.511.4717 to discuss your options.
ADVO, Inc. (NYSE:AD)
Affiliated Computer Services (ACS)
CNET Networks (CNET)
F5 Networks Inc. (FFIV)
IMAX (IMAX)
Jabil Circuit, Inc. (NYSE: JBL)
McAfee Inc. (MFE)
Power Integrations (POWI)
Semtech (SMTC)
The Shaw Group (SGR)
Stage Stores, Inc. (SSI)
Tier Technologies Inc. (TIERE)
Witness Systems Inc. (WITS)
Now with respect to securities cases that have recently settled. If
you are an affected investor – you purchased any of these stocks
during the relevant class period, you may wish to contact the
claims administrator to obtain additional information. Remember, if
you don’t submit your claim form, you won’t receive your share of
any settlement.
Symbol Technology, Inc. (SBL)
Class Period: March 2, 2000 to October 17, 2002
Claims Deadline: October 31, 2006
Claims Administrator: A.B. Data
Tellium, Inc. (TELM)
Class Period: May 17, 2001 to July 1, 2002
Claims Deadline: October 18, 2006
Claims Administrator: Analytics
Information regarding other recent settled cases, including the
cases listed below can be found at www.securitiessleuth.com.
Imperial Chemical Industries PLC (ICI)
Vistacare, Inc. (VSTA)
ARM Financial Group (ARMGQ)
Carreker Corp. (CANI)
Loewen Group Inc. (LWN)
Razorfish, Inc. (RAZF)
Again you should contact the claims administrator (rather than us).
However, if you are an affected investor in any of the companies
under investigation, you many wish to contact us so that you can
consider your options.
Likewise, if you happen to be aware of corporate restatements or
other financial fraud -- especially if you're a victim -- you're
encouraged to contribute to the Sleuth by giving your own tip-offs
at www.securitiessleuth.com or by e-mailing info@securitiessleuth.com.
You can also call Mark McNair at 877-511-4717. If you have a friend
or colleague you think would benefit from The Sleuth, please pass
along this issue and ask them to sign up at
www.cartville.com/app/join.asp?MerchantID=47994.
Warmest regards,
Mark McNair
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