PharmaNet Stock Plunge Prompts Class Action

Law360, New York (November 24, 2008, 12:00 AM EST) -- Investors have belted PharmaNet Development Group Inc. with a putative class action, alleging the drug development company concealed its shaky prospects from the public and artificially inflated its stock price.

The complaint, lodged Thursday in the U.S. District Court for the District of New Jersey, claims PharmaNet and its senior executives defrauded investors by falsifying statements about the company’s financial well-being between November 2007 and April 2008, causing thousands of investors to purchase stock at prices that later tanked.

PharmaNet CEO Jeffrey P. McMullen and Chief...
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