Pain Therapeutics, Inc. Hit By Investor Class Action Lawsuit Over Alleged Securities Laws Violations
San Diego, Dec. 2, 2011 (Shareholders Foundation) -- An investor in shares of Pain Therapeutics, Inc. (NASDAQ: PTIE) filed a lawsuit in United States District Court, Western District of Texas against Pain Therapeutics, Inc. over alleged Violations of Federal Securities Laws.
According to the complaint the plaintiff alleges that Pain Therapeutics, Inc and certain of its officers violated under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, 15 U.S.C. Sections 78j(b) and 78t(a); and SEC Rule 10b-5 promulgated thereunder by the SEC, 17 C.F.R. Section 240.10b-5 by issuing allegedly false and/or misleading statements and/or by failing to disclose material facts about a new drug, REMOXY.
Pain Therapeutics’ annual Revenue decreased from $65.98million for 2007 to $16.81million in 2010. Its Net Income fell from $20.30million for ’07 to a Net Loss of $12.02million in 2010.
Shares of Pain Therapeutics, Inc. (NASDAQ:PTIE) rose from as low as $3.84 in March ’09 to as high as $9.98 on June, 2011. Then on June 24, 2011 Pfizer (NYSE: PFE) and PainTherapeutics, Inc. (NASDAQ: PTIE) announced that a Complete Response Letter was received from the U.S. Food and Drug Administration (“FDA”) on the resubmission to the new drug application for REMOXY® (oxycodone) Extended-Release Capsules CII.
On June 27, 2011, Pain Therapeutics disclosed that the FDA's Complete Response Letter raised concerns related to, among other things, the chemistry, manufacturing, and controls sections of the new drug application for REMOXY.
NASDAQ: PTIE shares dropped significantly and traded on June 29, 2011 as low as $3.75 per share.


