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SC Decision Against Amgen Puts Pressure on Life Science Companies
Feb. 28, 2013 04:35PM PST
Life Science Investing
Medcitynews reported that following the United States Supreme Court decision against Amgen, life science companies are now likely to face pressure to settle with their shareholders earlier. The suit stemmed from an allegation by the Connecticut Retirement Plans and Trust Funds that Amgen made misleading statements about its anemia drugs and as a result, the share price stayed artificially high for several years until the US FDA expressed concern over the drugs’ effects on patients.
Medcitynews reported that following the United States Supreme Court decision against Amgen, life science companies are now likely to face pressure to settle with their shareholders earlier. The suit stemmed from an allegation by the Connecticut Retirement Plans and Trust Funds that Amgen made misleading statements about its anemia drugs and as a result, the share price stayed artificially high for several years until the US FDA expressed concern over the drugs’ effects on patients.
As quoted in the market news:
The theory behind a fraud-on-the-market-case is that a misrepresentation by the defendant made the stock price artificially high. The market was defrauded, so shareholders should be certified as a class and allowed to bring a class-action suit against the company.