Alpha 1 Biomedicals Inc. has been sued by a stockbroker-dealer, who claims that false statements by the companycaused him to suffer financial losses when he invested in itscommon stock.
Alpha 1 learned on Dec. 2 that James P. Hammond, a licensedbroker-dealer, and his wife filed the suit in the Supreme Courtof New York in Onondaga County, said Robert Lanham, Alpha1's vice president for finance. According to Lanham, theHammonds claim that they established and maintainedpositions in Alpha 1 common stock as a result of certainallegedly false statements made on behalf of the company, andthat they suffered losses due to failure of the stock price toappreciate substantially.
The Hammonds are seeking monetary damages, includingpunitive damages. Alpha 1 "believes that the suit is withoutmerit and intends to vigorously contest the claims," Lanhamsaid.
The stock (NASDAQ:ALBM) closed at $11.50, up 50 centsWednesday.
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