BENSALEM, Pa., Nov. 23 /PRNewswire/ -- Law Offices of Howard G. Smith announces that a class action lawsuit has been filed in the United States District Court for the District of New Jersey against PharmaNet Development Group, Inc. ("PharmaNet" or the "Company") (Nasdaq: PDGI), on behalf of all persons who purchased or otherwise acquired the Company's common stock between November 1, 2007 and April 30, 2008. The complaint alleges that the Company and certain of its executive officers violated federal securities laws. Specifically, the complaint alleges that certain public statements made by PharmaNet during that period were materially false and misleading because the statements failed to disclose or indicate, among other things: (1) that a substantial portion of the contracts in the Company's backlog were likely to be cancelled; (2) that the Company had increased its expenses in order to perform these contracts even though the contracts were likely to be cancelled; and (3) that as a result, statements made by the Company and management during that period about the Company's business, operations, and prospects lacked a reasonable basis.
On April 30, 2008 PharmaNet announced that it was revising downward its previously issued revenue guidance for 2008. The Company explained that cancellations over the fourth quarter of 2007 and the first quarter of 2008 of approximately $59 million would negatively impact projected revenues for 2008 by approximately $30 million. On this news, PharmaNet's shares declined $6.76 per share, or 28.33 percent, to close on May 1, 2008 at $17.10 per share, on unusually heavy trading volume.
If you are a member of the class described above, you may move the Court, no later than January 19, 2009 to serve as lead plaintiff, however, you must meet certain legal requirements. If you purchased PharmaNet's common stock between November 1, 2007 and April 30, 2008 or if you have information or would like to learn more about these claims, or if you wish to discuss these matters or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to Howardsmith@Howardsmithlaw.com.
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