NEW YORK, Dec. 13, 2010 (GLOBE NEWSWIRE) -- Shareholders of MELA Sciences, Inc. ("MELA" or the "Company") (Nasdaq:MELA) are reminded of the securities class action lawsuit filed against MELA and certain of its officers. The class action is on behalf of a class consisting of all persons or entities who purchased MELA securities from February 13, 2009 through November 16, 2010, inclusive (the "Class Period"). The Complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder.
MELA is a medical device company that focuses on the design and development of a non-invasive, point-of-care instrument to assist in the early diagnosis of melanoma. MELA's principal product, MelaFind, features a hand-held imaging device that emits multiple wavelengths of light to capture images of suspicious pigmented skin lesions and extract data.
Throughout the Class Period, Defendants represented to the investing public that an approval of MelaFind by the United States Food and Drug Administration ("FDA") would be forthcoming through a series of materially false and misleading statements regarding the status of MelaFind's ongoing clinical studies, and the safety and efficacy of the Company's products. For instance, at the beginning of the Class Period, Defendants announced "positive top-line results of its pivotal trial of MelaFind, a non-invasive, point-of-care instrument to assist in the early detection of melanoma, the deadliest form of skin cancer."
In misrepresenting positive aspects of MelaFind, Defendants were able to, among other things: (a) deceive the investing public regarding the Company's business, operations, management, future business prospects and the intrinsic value of MELA's common stock; (b) deceive the investing public regarding MELA's business and management; (c) deceive the investing public regarding the efficacy of MelaFind and its prospects for FDA approval; (d) enable Defendants to sell almost $79 million of MELA's common stock to the public while in possession of material adverse non-public information about the Company; and (e) cause plaintiff and other members of the Class to purchase MELA common stock at artificially inflated prices.
Finally, on November 16, 2010, it was reported, in part, that MelaFind "could cause harm because of the potential for misdiagnosis," and that "FDA staff pointed to numerous problems with MELA's study of the device, called MelaFind, including a significant lack of data, and urged a new clinical trial."
On this news, MELA's stock price plummeted approximately 54% or $3.45 per share, to close at $2.92 per share.
If you are a shareholder who purchased MELA securities during the Class Period, you have until January 21, 2011 to ask the Court to appoint you as lead plaintiff for the class. A copy of the complaint can be obtained at . To discuss this action, contact Fei-Lu Qian at flqian@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz Firm, with offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See .
CONTACT: Pomerantz Haudek Grossman & Gross LLP Fei-Lu Qian 888-476-6529 (ext. 241) flqian@pomlaw.com