Class Action Lawsuit Against Inspire Pharmaceuticals, Inc.
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The law firm of Schatz & Nobel, P.C. announced that a lawsuit seeking class action status has been filed in the United States District Court for the Middle District of North Carolina on behalf of all persons who purchased the publicly traded securities of Inspire Pharmaceuticals, Inc. between June 2, 2004 and February 8, 2005 (the "Class Period"), including purchasers in the July 26, 2004 and November 11, 2004 equity offerings.
The Complaint alleges that Inspire violated federal securities laws by issuing false or misleading public statements. Specifically, the Complaint alleges that Inspire made improper statements regarding the Stage III trial of its dry eye drug, Diquafosol tetrasodium. The Complaint alleges that Inspire failed to inform investors that the study's primary endpoint mandated by the FDA had changed from corneal staining to a more stringent corneal clearing. Moreover, the Complaint alleges that during a November 4, 2004 conference call, Inspire stated that the primary endpoint was "corneal staining." When the truth was revealed on February 9, 2005, Inspire stock fell from a previous close of $16.00 per share to close at $8.88 per share on extremely heavy trading volume.
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