Pharma Legal Updates: 12/12/16.
The following alerts have been issued by law firms regarding active investigations, alleged violations and/or pending legal actions:
Levi & Korsinsky, LLP announced that it has commenced an investigation of Ophthotech Corporation concerning possible violations of federal securities laws by the company and/or certain of its officers and directors.
On December 12, 2016, Ophthotech announced disappointing results for two phase 3 clinical trials designed to test the company’s experimental compound Fovista in combination with the drug Lucentis. Following this news, shares of Ophthotech were down more than 85 percent on intraday trading. To obtain additional information about the investigation: http://zlk.9nl.com/ophthotech-opht. (Business Wire)
Alexion Technologies Corporation
Glancy Prongay & Murray LLP announced that a class action lawsuit has been filed on behalf of investors who purchased Alexion Pharmaceuticals, Inc. securities between February 10, 2014 and November 9, 2016, inclusive. Alexion investors have until January 17, 2017 to file a lead plaintiff motion.
According to the complaint filed in this lawsuit, Alexion allegedly made false and/or misleading statements and/or failed to disclose: (1) that Alexion employed improper sales practices with respect to its product Soliris; (2) that the company’s revenues from Soliris sales were unlikely to be sustainable; and (3) that, as a result of the above, Alexion’s public statements were materially false and misleading at all relevant times.
On December 12, 2016, the company announced that Alexion CEO David Hallal and CFO Vikas Sinha had both resigned effective immediately; these resignations come amid allegations that the company engaged in improper sales practice on its top producing drug, Soliris. On this news Alexion shares fell over $20 per share or 15 percent during intraday trading on December 12, 2016. (Business Wire)
Impax Laboratories, Inc.
The Law Offices of Vincent Wong announced that a class action lawsuit has been commenced in the USDC for the District of New Jersey on behalf of investors who purchased Impax Laboratories, Inc. securities between February 25, 2014 and November 3, 2016. Click here to learn about the case: http://www.wongesq.com/pslra/impax-laboratories.
According to the complaint, during the Class Period the company allegedly made false and/or misleading statements and/or failed to disclose that: (a) Impax was engaged in conduct that would cause the antitrust division of the U.S. Department of Justice and the Connecticut Attorney General to conduct extensive investigations of possible collusion of generic drug pricing; (b) the DOJ investigation and the underlying conduct was likely to result in criminal charges against Impax, and possibly its officers and directors, for collusion of generic drug pricing; (c) Impax lacked effective internal controls over financial reporting; and (d) as a result, Defendants’ public statements were materially false and misleading at all relevant times. (Business Wire)
ProNAi Therapeutics, Inc.
Levi & Korsinsky, LLP issued a reminder notification to certain ProNAi Therapeutics, Inc. shareholders: A securities class action lawsuit has been commenced in the USDC for the Southern District of New York. The notice pertains to persons or entities who purchased shares of ProNAi between July 15, 2015 and June 6, 2016 (the “Class Period”).
The complaint alleges that, throughout the Class Period, ProNAi made materially false and misleading statements about the potential and efficacy of its drug product candidate PNT2258 in the company’s public filings, which caused ProNAi’s stock price to be artificially inflated throughout the Class Period, thus harming investors.
On June 6, 2016, ProNAi revealed that the Phase 2 clinical trials of PNT2258 failed to produce sufficient efficacy results to justify continued clinical development of the drug and, thus, ProNAi was suspending clinical development of PNT2258. Following this news, shares of ProNAi fell more than 67 percent. To get more information go to: http://www.zlk.com/pslra/pronai-therapeutics-inc. (Business Wire)
Taro Pharmaceutical Industries Ltd.
Levi & Korsinsky, LLP issued a reminder notification to certain Taro Pharmaceutical Industries Ltd. shareholders: A securities class action lawsuit has been commenced in the USDC for the Southern District of New York. The notice pertains to persons or entities who purchased or otherwise acquired Taro securities between July 3, 2014 through September 9, 2016.
The complaint alleges that during the Class Period, Taro Pharmaceutical made false and/or misleading statements and/or failed to disclose material information, including that since 2014, Taro Pharmaceutical has violated federal antitrust laws by colluding with other pharmaceutical companies to keep the price of generic products artificially high.
On September 9, 2016, Taro Pharmaceutical disclosed the receipt of grand jury subpoenas in connection with a federal antitrust investigation into generic drug pricing. Then on October 17, 2016, an antitrust class action was filed against Taro Pharmaceutical and several other companies alleging they have engaged in the price-fixing of the generic drug Clobetasol since 2014. To get more information go to: http://www.zlk.com/pslra/taro-pharmaceutical-industries-ltd. (Business Wire)
Levi & Korsinsky, LLP issued a reminder notification to certain Biogen Inc. shareholders: A securities class action lawsuit has been commenced in the USDC for the District of Massachusetts. The notice pertains to persons or entities who purchased or otherwise acquired securities of Biogen between July 23, 2014 and July 23, 2015.
The complaint alleges that the defendants employed devices, schemes and artifices to defraud, while in possession of material adverse non-public information, in an effort to assure investors of Biogen’s value and performance and continued substantial growth. In particular, the complaint alleges that the company failed to disclose material information about the company’s business, particularly in regards to their Tecfidera drug treatment.
In 2014, according to the law firm’s statement, the MS Institute at Shepherd Center in Georgia, a prescriber of Tecfidera, began conducting blood tests of MS patients taking the drug. By August of that year, the center began notifying Biogen that Tecfidera was causing low lymphocyte counts among approximately 30 percent of the center’s MS patients taking the drug; eventually the center stopped prescribing Tecfidera and transferred many of its patients to other therapies. Biogen, however, continued to tout the safety and growing sales of Tecfidera throughout the second and third quarter of 2014. To get more information go to: http://www.zlk.com/pslra/biogen-inc. (Business Wire)
(Source: Associated Press)