Case Page

 

Case Status:    SETTLED
On or around 03/09/2007 (Date of order of final judgment)

Filing Date: August 08, 2003

On April 4, 2007, the Court entered the Order granting in part and denying part the motion for attorney fees. According to the Order, the Court hereby awards Lead Counsel attorneys’ fees of 30% of the Settlement Fund and $380,738.38 in expenses. Finally, the Court awards lead plaintiff David Crossen the amount of $26,000.00 for reimbursement of time and expenses incurred in representing the class.

On March 9, 2007, the Court entered the Final Judgment and Order of Dismissal with Prejudice signed by U.S. District Judge Susan Illston. According to the Order, the settlement is approved. The same day, the Court entered the Order approving the plan of allocation of settlement proceeds.

On December 8, 2006, a Stipulation of Settlement was filed with the court. Both parties have agreed to a settlement of $13,500,000.

As disclosed by the Company’s FORM 10-Q for the quarterly period ended September 30, 2006, several other purported securities class action lawsuits containing substantially similar allegations were filed against the defendants. In November 2003, the court appointed a lead plaintiff, and in December 2003, the court consolidated all of the securities class actions filed to date into a single action captioned In re CV Therapeutics, Inc. Securities Litigation. In January 2004, the lead plaintiff filed a consolidated complaint. The Company and the other named defendants filed motions to dismiss the consolidated complaint in March 2004. In August 2004, these motions were granted in part and denied in part. The court granted the motions to dismiss by two individual defendants, dismissing both individuals from the action with prejudice, but denied the motions to dismiss by the Company and the two other individual defendants. After the motions to dismiss were decided, this action entered the discovery phase. In October 2006, the Company reached a preliminary agreement to settle this action. Under the terms of the preliminary agreement, the Company’s insurers will pay an aggregate of $13.5 million to settle all claims and to pay the court-approved fees of plaintiff’s counsel. The defendants will receive a complete release of all claims and expressly deny any wrongdoing. The preliminary agreement is subject to standard conditions, including final court approval. There can be no assurance that final court approval will be obtained.

The original complaint charges CV Therapeutics and certain of its officers and directors with violations of the Securities Exchange Act of 1934. CV Therapeutics is a biopharmaceutical company focused on the discovery, development and commercialization of new small molecule drugs for the treatment of cardiovascular diseases. The complaint alleges that during the Class Period, defendants artificially inflated the price of CV Therapeutics shares by issuing a series of materially false and misleading statements about the Company's New Drug Application for Ranexa, a drug for the treatment of chronic angina.

The true facts, which were known by each of the defendants during the Class Period, but were concealed from the investing public, were as follows: (a) That the required regulatory assessment of safety and efficacy requirements for Ranexa was deficient; (b) That, due in part to a major disruption and changes in the Company's relationship with Quintiles Transnational Corp. ("Quintiles"), responsibility for and supervision of the clinical development program was in disarray; (c) That neither the defendants nor Quintiles possessed sufficient knowledge or experience to effectively deal with the QT interval prolongation or other safety issues facing Ranexa; (d) That the clinical program for Ranexa was so defective that it prohibited, even with reasonable application of additional resources, the imposition of the required form or administrative requirements in the expeditious manner necessary to meet FDA deadlines for data presentation to the advisory committee; (e) That the Company misled the FDA into believing that the application and studies were in order for Ranexa as late as July 7, 2003, the date the FDA informed the Company of the meeting; (f) That the Company misled the FDA into believing that it could prepare its briefing package for the Advisory Committee meeting by the deadline; (g) That, for one or more reasons related to unmet safety or efficacy requirements for the drug, the NDA for Ranexa could not be approved as submitted; and (h) That the failure to disclose the defective nature of the early clinical program or other obstacles preventing the Company from meeting the briefing package deadline would prevent investors from learning the extent of the misrepresentations made to them during the Class Period. As a result of the defendants' false statements, CV Therapeutics stock traded at inflated prices during the Class Period, increasing to as high as $37.80 on June 5, 2003, whereby the Company sold $100 million worth of its own
securities.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Biotechnology & Drugs
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: CVTX
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: N.D. California
DOCKET #: 03-CV-03709
JUDGE: Hon. Susan Illston
DATE FILED: 08/08/2003
CLASS PERIOD START: 05/14/2003
CLASS PERIOD END: 08/01/2003
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  2. Brodsky & Smith, LLC (former Pennysylvania)
    11 Bala Avenue, Suite 39, Brodsky & Smith, LLC (former Pennysylvania), PA 19004
    610.668.7987 610.660.0450 · esmith@Brodsky-Smith.com
  3. Cauley Geller Bowman Coates & Rudman, LLP (New York)
    200 Broadhollow, Suite 406, Cauley Geller Bowman Coates & Rudman, LLP (New York), NY 11747
    631.367.7100 631.367.1173 ·
  4. Milberg Weiss Bershad Hynes & Lerach LLP (S.F., CA)
    100 Pine Street - Suite 2600, Milberg Weiss Bershad Hynes & Lerach LLP (S.F., CA), CA 94111
    415.288.4545 415.288.4534 ·
No Document Title Filing Date
COURT: N.D. California
DOCKET #: 03-CV-03709
JUDGE: Hon. Susan Illston
DATE FILED: 01/20/2004
CLASS PERIOD START: 12/30/2002
CLASS PERIOD END: 12/05/2003
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Lerach Coughlin Stoia Geller Rudman & Robbin (San Francisco)
    100 Pine Street, Suite 2600, Lerach Coughlin Stoia Geller Rudman & Robbin (San Francisco), CA 94111
    415.288.4545 415.288.4534 · info@lerachlaw.com
  2. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    655 West Broadway, Suite 1900, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 ·
  3. Milberg Weiss Bershad Hynes & Lerach LLP (S.F., CA)
    100 Pine Street - Suite 2600, Milberg Weiss Bershad Hynes & Lerach LLP (S.F., CA), CA 94111
    415.288.4545 415.288.4534 ·
  4. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
    600 West Broadway, 1800 One America Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA), CA 92101
    800.449.4900 · support@milberg.com
No Document Title Filing Date
No Document Title Filing Date