WARRINGTON, Pa., March 20, 2007 (PRIME NEWSWIRE) -- Discovery Laboratories, Inc. (Nasdaq:DSCO), a biotechnology company focused on developing its proprietary surfactant replacement therapies to address various respiratory conditions, announced today that the United States District Court for the Eastern District of Pennsylvania, granted the Company's Motion to Dismiss the Second Consolidated Amended Complaint that was filed against the Company and two of its executive officers on November 30, 2006.
The Second Consolidated Amended Complaint, like the first consolidated complaint that was filed on August 9, 2006 and dismissed, without prejudice on November 1, 2006, alleged violations of Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act), Rule 10b-5 and Section 20(a) of the Exchange Act in connection with various public statements made by the Company. The Company has no information as to whether the plaintiffs plan to file an appeal.
In addition, on March 19, 2007, the Court issued an order in the derivative action against the Company and several of its officers and directors, in which the plaintiffs filed a consolidated amended complaint on December 29, 2006 and the defendants filed a motion to dismiss on January 26, 2007. The Court directed that, as the derivative action complaint is largely based on the assumption that various statements made by the Company subjected it to potential liability under the federal securities laws and the Court's March 15 opinion in the class action held that the vast majority of the statements referenced in the derivative plaintiffs' complaint are not actionable under federal law, plaintiffs should file a supplemental brief explaining why the Court's March 15 decision in the class action does not require dismissal of the derivative complaint as well, and defendants should file a response.
About Discovery Labs
Discovery Laboratories, Inc. is a biotechnology company developing Surfactant Replacement Therapies (SRT) for respiratory diseases. Surfactants are produced naturally in the lungs and are essential for breathing. Discovery's technology produces a precision-engineered surfactant that is designed to closely mimic the essential properties of natural human lung surfactant. Discovery believes that its proprietary SRT pipeline has the potential to advance respiratory medicine and address a variety of respiratory diseases affecting premature infants, children and adults.
Discovery's lead product candidate, Surfaxin(r), is the subject of an Approvable Letter from the FDA for the prevention of Respiratory Distress Syndrome in premature infants. Surfaxin is also being developed for the prevention and treatment of Bronchopulmonary Dysplasia in premature infants. Aerosurf(tm), Discovery's aerosolized SRT, is being developed initially to treat premature infants suffering from respiratory disorders and is intended to obviate the need for intubation and conventional mechanical ventilation. Discovery's SRT pipeline also includes programs potentially addressing Acute Lung Injury, Acute Respiratory Failure, Cystic Fibrosis, Acute Respiratory Distress Syndrome, and other respiratory conditions. For more information please visit our website at www.Discoverylabs.com.
CONTACT: Discovery Laboratories, Inc. Investor Relations Lisa Caperelli 215-488-9413