BOSTON, Nov. 15, 2010 /PRNewswire/ -- The Securities and Exchange Commission and the United States Department of Justice have filed civil and criminal complaints alleging that the defendant in those cases (Yves M. Benhamou, M.D.) gave material non-public information regarding the failure of a major clinical trial of HGSI to hedge funds which then sold approximately six million shares of HGSI during December 2007 and January 2008, while in possession of that material non-public information. On January 23, 2008, HGSI publicly disclosed the information regarding the clinical trial failure. In response to that negative news, on January 23, 2008, the price of HGSI stock dropped $4.40 per share (44%), to $5.62 per share. By selling its shares before that public announcement, those hedge funds avoided losses of at least $30 million. It has been confirmed that the hedge funds which sold those shares of HGSI while in possession of material, non-public information are hedge funds managed by FrontPoint, which is owned by Morgan Stanley.
Under the federal securities laws, if you purchased shares of HGSI around the time that the FrontPoint funds were selling shares of HGSI (December 7, 2007 through January 22, 2008) you would have a claim against the FrontPoint funds. Your claim would likely be worth approximately $4.40 per share, for each share of HGSI that you purchased from December 7, 2007 through January 22, 2008.
As reflected on our website (www.shulaw.com), Shapiro Haber & Urmy LLP is a highly experienced law firm specializing in prosecuting actions under the federal securities laws. If you purchased shares of HGSI during the period December 7, 2007 through January 22, 2008, we would welcome the opportunity to discuss this matter with you. Please contact by email attorney Edward Haber ([email protected]) or attorney Michelle Blauner ([email protected]) or by telephone (617-439-3939).
SOURCE Shapiro Haber & Urmy LLP