Cohen Milstein Sellers & Toll PLLC Announces Investigation of BioMimetic Therapeutics, Inc.

WASHINGTON--(BUSINESS WIRE)--Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether BioMimetic Therapeutics, Inc. (“BioMimetic” or the “Company”) and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

A class action lawsuit has been filed in the U.S. District Court for the Middle District of Tennessee by another law firm on behalf of purchasers of the common stock of BioMimetic Therapeutics, Inc. (NASDAQ:BMTI) between October 14, 2009 and May 11, 2011, inclusive (the “Class Period”).

BioMimetic Therapeutics, Inc. is a biotechnology company specializing in the development and commercialization of products to promote the healing of musculoskeletal injuries and diseases. During the Class Period, the Company’s primary focus was obtaining marketing approval for its product, Augment, which it describes as “an alternative bone grafting substitute” for use in place of autologous (when the donor and recipient are the same person) bone grafts.

The complaint alleges that BioMimetic and certain of its officers and/or directors (“Defendants”) misrepresented and/or failed to disclose: (a) material facts about the Company's business, operations, management, future business prospects and the intrinsic value of BioMimetic’s common stock; (b) material facts about the safety and efficacy of Augment and its prospects for FDA approval; and (c) the inadequacies of Augment's clinical trial—such as the fact that it “dramatically deviated” from the protocol agreement with the FDA; the sample size of the trial was too small to glean verifiable results; and the results of the clinical trial were not statistically significant compared to autologous grafts after three years.

On May 10, 2011, the FDA published briefing documents which indicated that “the FDA still has clinical concerns with the safety and overall risk/benefit of the [Augment] device at this time, primarily due to the unanswered question of safety in regards to the potential for cancer formation versus an unproven benefit in the current standard for care,” and that it had “major statistical concerns” with the Augment trial. In a research report the same day, an analyst wrote that the negative tone of the briefing documents, as well as the fact that certain parts of the documents appeared to be at odds with management’s prior representations about the Augment trial, had contributed to a sell-off of BioMimetic shares. BioMimetic shares fell from $13.39 to $8.66 on May 10, 2011.

Cohen Milstein encourages all investors who purchased BioMimetic common stock between October 14, 2009 and May 11, 2011, or former employees with information concerning this matter to contact the firm.

If you are a BioMimetic shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein’s Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at stoll@cohenmilstein.com. If you purchased the common stock of BioMimetic and wish to serve as lead plaintiff, you must move the Court no later than September 6, 2011 to request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must decide that your claim is typical of the claims of other class members, and that you will adequately represent the class. Your share in any recovery will not be enhanced or diminished by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may retain Cohen Milstein Sellers & Toll PLLC or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member.

Cohen Milstein Sellers & Toll PLLC has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York, Philadelphia, Chicago, and West Palm Beach, and is active in major litigation pending in federal and state courts throughout the nation.

The firm’s reputation for excellence has repeatedly been recognized by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen Milstein Sellers & Toll PLLC has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total over a billion dollars. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.

If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:

Steven J. Toll, Esq.
Tyler Gaffney
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
West Tower, Suite 500
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
Email: stoll@cohenmilstein.com; tgaffney@cohenmilstein.com

Attorney Advertising