Schoengold & Sporn, P.C. Announces First-Filed Securities Fraud Class Action Against NeoPharm, Inc.

NEW YORK, NY, June 14, 2002 (BUSINESSWIRE), - Schoengold & Sporn, P.C. ((866) 348-7700 or mailto:www.Schoengold@aol.com, Shareholderrelations@spornlaw.com), announces that on April 25, 2002, it filed the first securities fraud class action on behalf of all persons or institutions who acquired the securities of NeoPharm, Inc. (NASDAQ:NEOL - news) ("NeoPharm" or the "Company") between September 25, 2000 and April 19, 2002, inclusive (the "Class Period") at artificially inflated prices due to the defendants' materially false and misleading statements concerning its net income and inventories.

The Complaint alleges that NeoPharm and certain of its directors and officers violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market during the Class Period, thereby artificially inflating the price of NeoPharm common stock Hospital Bonds. Specifically, the Complaint alleges that NeoPharm issued a series of statements concerning its Liposome Encapsulated Praclitaxel (“LEP”) product, and that the defendants made materially false positive statements to Pharmacia in order to induce their participation in clinical trials of LEP; failed to disclose that Pharmacia was studying a different formulation of LEP that would not necessarily support the approval of NeoPharm’s LEP product; and failed to disclose that all of Pharmacia’s clinical trials failed to produce any positive benefits to patients. In addition, certain individual defendants wrongfully sold shares of NeoPharm on the open market at artificially inflated prices, reaping proceeds of over $7 million.

When, on April 19, 2002, NeoPharm announced that it filed for arbitration to resolve a dispute with Pharmacia, and, in response, Pharmacia counter-claimed for breach of its agreement with NeoPharm concerning the nature of NeoPharm’s initial disclosures, the market reacted accordingly. NeoPharm’s stock price dropped from $20.41 per share on April 19, 2002 to $15.43 on April 22, 2002 on volume of 2,863,000 -- over seventeen times the prior day’s volume.

If you purchased securities of NeoPharm during the Class Period, September 25, 2000 and April 19, 2002, inclusive, you may be a member of the class and may move the Court to be named a lead plaintiff. If you wish to so serve as lead plaintiff, you must move the Court no later than June 25, 2002. The action is pending in the Northern District of Illinois, Docket No. 02-C-2976, before District Judge Joan H. Lefkow.

Schoengold & Sporn, P.C. was established in 1962 and has specialized in securities fraud litigation for over 35 years, recovering multi-millions of dollars for defrauded investors. In the recently settled case of Del Global Technologies Securities Litigation, 00-Civ-8495 (CM) where the shareholders are anticipated to receive over 60% of their losses, Judge McMahon of the United States District Court for the Southern District of New York, White Plains, N.Y. courthouse, in approving the settlement on January 28, 2002, said of Schoengold & Sporn, the plaintiffs’ sole lead counsel:

“I can’t remember ever having participated as a lawyer or as a Judge in a settlement of a securities fraud class action that yielded in excess of a 40 percent rate of discovery. . . .”

“In this case the lawyers have gone the extra mile.”

Any securities investor of NeoPharm during the Class Period is invited to call or otherwise contact Schoengold & Sporn, P.C. at (866) 348-7700, fax us at (212) 267-8137 or e-mail us at Shareholderrelations@spornlaw.com for information or to join the litigation:

CONTACT:
Jay P. Saltzman, Esq.
Ashley Kim, Esq.
Schoengold & Sporn, P.C.
19 Fulton Street, Suite 406
New York, New York 10038
Tel: (212) 964-0046
Fax: (212) 267-8137
Toll Free: (866) 348-7700
E-Mail: shareholderrelations@spornlaw.com
Website: www.spornlaw.com

SOURCE: Schoengold & Sporn, P.C.

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