 | ||
|
| Home Annual/Quarterly Updates About Us
|
Biogen Idec, Inc. Summary: According to a press release dated August 11, 208, an appeal court has upheld the dismissal of a consolidated securities class action against Biogen Idec Inc. for the 2005 stock drop that resulted when the drugmaker temporarily yanked its multiple sclerosis treatment from the market. A three judge panel of the U.S. Court of Appeals for the First Circuit on Thursday denied the plaintiffs' appeal, finding they had failed to show how company executives would have known about the risks associated with the drug Tysabri well before disclosing them to the public in February 2005.
On October 15, 2007, a Notice of Appeal was filed as to the Order on the motion to dismiss. The appeal is currently pending in the U.S. Court of Appeals for the First Circuit.
On November 15, 2006, the Defendants filed a motion to dismiss the Consolidated Class Action Complaint. On September 14, 2007, the Court entered the Order allowing the Defendants’ motion to dismiss.
According to the Company’s FORM 10-Q for the quarterly period ended September 30, 2006, several actions have been consolidated with the Brown case. On October 13, 2006, the plaintiffs filed an amended consolidated complaint which, among other amendments to the allegations, adds as the Company’s Chief Financial Officer, the Company’s Chief Operating Officer, the Company’s Executive Vice President of Portfolio Strategy, and the Company’s former General Counsel.
The original complaint charges Biogen and certain of its current executives with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that TYSABRI posed serious immune-system side effects; (2) that TYSABRI, like other MS drugs, made patients susceptible to progressive multifocal leukoencephalopathy ("PML") by changing the way certain white blood cells function, thereby allowing PML, a normally dormant virus, to run rampant within the human body; (3) that defendants knew and/or recklessly disregarded documented facts that MS drugs can cause greater incidents of PML to occur; and (4) that defendants concealed these facts in order to fast track TYSABRI for FDA approval so that they could reap the financial benefits from the sales of the drug.
The complaint further alleges on or around February 28, 2005, before the market opened, Biogen announced a voluntary suspension in the marketing of TYSABRI® (natalizumab), a treatment for multiple sclerosis (MS), because of two serious adverse events that have occurred in patients treated with TYSABRI in combination with AVONEX® (Interferon beta-1a) in clinical trials. News of this shocked the market. As a result, shares of Biogen fell $28.63 per share, or 42.44 percent, to close at $38.65 on unusually high trading volume.
INDUSTRY CLASSIFICATION:
SIC Code: 2836
Sector: Healthcare
Industry: Biotechnology & Drugs
| COMPANY/ISSUER NAME: | Biogen Idec, Inc. |
| COMPANY/ISSUER TICKER: | BIIB |
| COMPANY WEBSITE: | http://www.idecpharm.com/ |
| FIRST IDENTIFIED COMPLAINT IN THE DATABASE | |||||||||||||||||
| Charles Brown, et al. v. Biogen Idec Inc., et al. | |||||||||||||||||
| |||||||||||||||||
| DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT | |||
| Class Action Complaint - Jury Trial Demanded | |||
| Type: Complaint | Date on the document: 03/03/2005 | ||
| Motion Of The Biogen Institutional Investor Group For Consolidation, Appointment Of Lead Plaintiff, And Approval Of Lead Plaintiff’s Selection Of Co-Lead Counsel And Liaison Counsel | |||
| Type: Motion | Date on the document: 05/02/2005 | ||
| REFERENCE COMPLAINT | |||||||||||||||||
| In Re: Biogen Idec, Inc. Securities Litigation | |||||||||||||||||
| |||||||||||||||||
| DOCUMENTS FOR THE REFERENCE COMPLAINT | |||
| Consolidated Class Action Complaint For Violations Of The Federal Securities Laws | |||
| Type: Complaint | Date on the document: 10/13/2006 | ||
| Order | |||
| Type: Order | Date on the document: 09/14/2007 | ||
| U.S. District Court Civil Docket | |||
| Type: Declaration | Date on the document: 10/24/2007 | ||
| US District Court Civil Docket | |||
| Type: Docket | Date on the document: 8/8/2008 | ||
| OTHER DOCUMENTS | |||
| Case Name and/or Number: | |||
| Type: | Date on the document: | ||
WARNING AND DISCLAIMER OF LIABILITY:
The information included on this Web site, whether provided by personnel employed by Stanford Law School or by third parties, is provided for research and teaching purposes only. Neither Stanford University, Stanford Law School, nor any of their employees, agents, contractors, or affiliates warrant the accuracy or completeness of the information or analyses displayed herein, and we caution all readers that inclusion of any information on this site does not constitute an endorsement of the truthfulness or accuracy of that information. In particular, this Web site contains complaints and other documents filed in federal and state courts, which make allegations that may or may not be accurate. No reader should, on the basis of information contained in or referenced by this Web site, assume that any of these allegations are truthful.
Go to Search page | Go to Case Index page | Back to Top