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Bernstein Liebhard LLP Announces Filing of Action on Behalf of Investors in XenoPort, Inc.

^{Published on 2010-07-29 11:20:53 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--Bernstein Liebhard LLP today announced that a class action has been filed in the United States District Court for the Northern District of California on behalf of purchasers (the aClassa) of XenoPort, Inc. (aXenoPorta or the aCompanya) (NASDAQ: XNPT) common stock during the period between May 5, 2009 and February 17, 2010 (the aClass Perioda).

XenoPort focuses on developing internally discovered product candidates that utilize the bodya™s natural nutrient transport mechanisms to improve the therapeutic benefits of existing drugs.

The complaint alleges that XenoPort and certain of its officers and directors violated the Securities Exchange Act of 1934. Throughout the Class Period, defendants allegedly disseminated misleading and incomplete information about XenoPorta™s Phase 3 clinical program for an extended-release tablet and development stage drug called Horizant (gabapentin enacarbil), also known as XP13512 (a512a), as a potential treatment for moderate-to-severe primary Restless Legs Syndrome (aRLSa). However, the Companya™s top management was aware that 512 had earlier shown an increased occurrence of pancreatic cancer in lab rats. Instead of disclosing these findings, which would have affected the publica™s expectations about the likelihood of FDA approval, defendants repeatedly assured the public as to 512a™s safety and efficacy. As a result of these false and misleading statements, XenoPort stock traded at artificially inflated prices during the Class Period, reaching a high of $24.75 per share on September 17, 2009 and permitting the Company to complete a secondary offering in July 2009 of 2.875 million shares of XenoPort stock at $19 per share for proceeds of nearly $45 million.

On February 17, 2010, defendants publicly disclosed that the FDA had declined approval of Horizant, with concerns about laboratory results showing pancreatic cell tumors in rats due to use of the drug. As a result of this news, XenoPorta™s stock fell $12.93 per share to close at $6.67 per share on February 18, 2010 -- a one-day decline of 65% on volume of 36.5 million shares, over 16 times the average three-month daily volume.

Plaintiff seeks to recover damages on behalf of all Class members who purchased or otherwise acquired shares of XenoPort during the Class Period. If you purchased or otherwise acquired XenoPort shares during the Class Period, and either lost money on the transaction or still hold the shares, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than September 27, 2010.

A alead plaintiffa is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class membera™s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.

Bernstein Liebhard has pursued hundreds of securities, [ consumer ] and shareholder rights cases and recovered almost $3 billion for its clients. It has been named to The National Law Journala™s aPlaintiffsa™ Hot Lista in each of the last seven years.

You can obtain a copy of the complaint at [ www.bernlieb.com ] or from the clerk of the court for the United States District Court for the Northern District of California.

Bernstein Liebhard LLP
10 East 40th Street
New York, New York 10016
(877) 779-1414
[ www.bernlieb.com ]

ATTORNEY ADVERTISING. © 2010 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. Prior results do not guarantee or predict a similar outcome with respect to any future matter.