Dyer & Berens LLP Files Class Action Lawsuit on Behalf of Investors Who Purchased XenoPort, Inc. Common Stock between 5/5/09 and 2/17/10; Announces Upcoming Investor Deadline

DENVER, CO – July 28, 2010 – Dyer & Berens LLP today announced that it has filed a class action lawsuit in the United States District Court for the Northern District of California on behalf of investors who purchased XenoPort, Inc. (“XenoPort” or the “Company”) (NASDAQ:XNPT) common stock between May 5, 2009 and February 17, 2010, inclusive (the “Class Period”).  The complaint charges XenoPort and certain of its officers and directors with violations of the federal securities laws.  XenoPort is a biopharmaceutical company that is focused on developing a portfolio of internally discovered product candidates that utilize the body’s natural transport mechanisms to improve the therapeutic benefits of existing drugs.

Click here to view the Complaint.

If you wish to serve as a lead plaintiff, you must move the court no later than September 27, 2010.  If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Jeffrey A. Berens, Esq. at (888) 300-3362 x302, (303) 861-1764, or via email at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it . A ny member of the putative 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 alleges that, throughout the Class Period, defendants disseminated false and misleading statements to the investing public and concealed negative information related to the prospects for approval by the Food and Drug Administration (“FDA”) of a new drug application for an extended-release tablet called Horizant, also known as XP13512 (“512”), a potential treatment for moderate-to-severe Restless Legs Syndrome.  These false, positive statements caused XenoPort stock to trade at artificially inflated prices during the Class Period, until the true facts were eventually revealed, resulting in significant losses to investors.

Specifically, the complaint alleges that XenoPort entered into an exclusive agreement to co-develop and commercialize 512 with GlaxoSmithKline in February 2007.  Defendants touted this collaboration to support the legitimacy of the positive statements they issued about 512, including that there was strong evidence of safety and indicating that its Phase 3 clinical program remained on track.  This allowed the Company to raise a substantial amount of money as XenoPort stock traded at artificially inflated prices, reaching a high of $24.75 per share on September 17, 2009, and through a secondary offering in July 2009 of 2.875 million shares at $19 per share that garnered nearly $45 million in proceeds.

However, the Company’s top management was aware that 512 had shown an increased occurrence of pancreatic cancer in lab rats.  While the drug had been approved for more serious indications, this presented a significant risk that it would not be approved for the treatment of less serious conditions like Restless Leg Syndrome.  Yet the Company failed to disclose these facts and instead repeatedly made false and misleading statements assuring the public as to 512’s safety and efficacy.

On February 17, 2010, when XenoPort was finally forced to disclose that the FDA had rejected 512’s new drug application due to concerns about laboratory study results showing pancreatic cell tumors in rats as a result of the drug, the Company’s shares plummeted $12.93 per share to close at $6.67 per share on February 18, 2010, causing substantial losses to investors.  This represented a one-day drop of nearly 65% and a 73% decline from the Class Period high.

Plaintiff seeks to recover damages on behalf of XenoPort investors.  The plaintiff is represented by Dyer & Berens LLP, which has expertise in prosecuting investor class actions involving financial fraud.  The firm’s extensive experience in securities litigation, particularly in cases brought under the Private Securities Litigation Reform Act, has contributed to the recovery of hundreds of millions of dollars for aggrieved investors.  For more information about the firm, please go to www.DyerBerens.com.

Contact:

Jeffrey A. Berens

Dyer & Berens LLP

303 East 17th Avenue, Suite 300

Denver, CO  80203

Tel: (888) 300-3362 or (303) 861-1764

Email: