Biotech Values

[DewDiligence]

Isolagen sued:

[ILE is another company I wouldn’t touch with a 10-foot pole; pretty sure they are a scam.]

http://biz.yahoo.com/bw/050818/185573.html?.v=1

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Lerach Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit against Isolagen, Inc.

Thursday August 18, 2:37 pm ET

SAN DIEGO--(BUSINESS WIRE)--Aug. 18, 2005--Lerach Coughlin Stoia Geller Rudman & Robbins LLP ("Lerach Coughlin") today announced that a class action has been commenced in the United States District Court for the Southern District of Texas on behalf of purchasers of Isolagen, Inc. ("Isolagen") (AMEX: ILE ) publicly traded securities during the period between March 3, 2004 and August 1, 2005 (the "Class Period"), including purchasers of Isolagen stock issued in connection with and traceable to Isolagen's June 2004 stock offering.

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, William Lerach or Darren Robbins of Lerach Coughlin, at 800-449-4900 or 619-231-1058, or via e-mail at [e-mail]. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.lerachlaw.com/cases/isolagen/. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges Isolagen and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Isolagen specializes in the development and commercialization of autologous cellular therapies for soft and hard tissue regeneration (the "Isolagen Process"). Autologous cellular therapy utilizes a process whereby a patient's own cells are extracted, allowed to multiply and then injected into the patient. In January 2003, defendants began phase I clinical trials aimed at demonstrating the safety and efficacy of using the Isolagen Process to treat dermal defects.

The complaint alleges that without solid clinical data developed under controlled conditions, the data gathered in the clinical trials would never meet the FDA's "adequate and well-controlled" criteria for acceptable clinical trials and the Company's business plan would lack credibility to the investment community. Defendants' own internal testing showed the Isolagen Process had demonstrated nowhere near the efficacy required to obtain FDA approval, which was needed to make the Company profitable. However, during the Class Period, defendants touted the efficacy of the Isolagen Process both for dermal and dental treatments, running up the Company's stock price to a Class Period high of $12 per share on April 2, 2004.

On August 1, 2005, the Company disclosed that the preliminary results from its phase III clinical trial of the Isolagen Process for the treatment of contour deformities (wrinkles) had not met all four primary end points and that neither of the two dermal studies had achieved independent statistical significance. On this news, the Company's stock price plummeted more than 45%, from $5.50 per share to below $3 per share, on very high volume.

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