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Avoiding And Defeating Securities Fraud Actions Against Clinical-Stage Biopharmaceutical Companies
Bloomberg BNA Life Sciences Law & Industry Report
In March 2014, a clinical-stage biopharmaceutical company announced that the FDA had ordered it to suspend ongoing clinical trials for the company's sole product as a result of concerns about possible liver toxicity. The next day, the company's stock price dropped significantly. Two days later, plaintiffs' lawyers filed a securities fraud class action alleging that the company and its executives failed to disclose possible liver damage issues identified during the clinical trials, resulting in an artificially inflated stock price.
Mark P. GoodmanPartner
Maura Kathleen MonaghanPartner
William H. Taft VPartner
Jacob W. StahlCounsel
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