Xytronyx Inc. shares lost $2.50 to $16 on Wednesday after thecompany said a shareholder class-action suit has been filedagainst it and certain officers.
According to the company, the suit claims that Xytronyx(AMEX:XYX) failed to disclose information regarding theprospects for Food and Drug Administration approval ofXytronyx's PerioGuard Periodontal Tissue Monitor Kit. The suitwas filed on Feb. 4 in Southern District Court in California onbehalf of people who purchased the common stock betweenMay 18, 1990, and Nov. 14, 1991.
In May 1990, an FDA advisory panel recommended approval ofthe kit, which tests for the presence of an enzyme secreted byinfected gums. On Nov. 15, 1991, the company's stock plunged$14.38 to $13.25 after the FDA said that the company's pre-market approval application wasn't approvable.
Xytronyx said it believes the suit to be without merit. PeterBaram, chairman and chief executive, said he wasn't aware ofany other lawsuits against the San Diego company. -- KB
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