Allos Therapeutics, Inc., a biopharmaceutical company, develops and markets therapeutics to treat cancer.
Several purported class action Complaints have been filed alleging that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically the Complaint alleges that Allos misled the investing public by issuing a series of materially false and misleading statements highlighting the purported efficacy of the Company's radiation sensitizer RSR13 ("Efaproxiral") for the treatment of brain metastases in patients with breast cancer, as well as the likelihood that this drug would receive approval from the U.S. Food and Drug Administration ("FDA"). On April 30, 2004 and May 3, 2004, it was announced by the Oncologic Drugs Advisory Committee ("ODAC") of the FDA that it concluded by a 16-1 vote to recommend that the FDA NOT approve Efaproxiral. In recommending rejection of Efaproxiral, the ODAC found that "the evidence of drug efficacy needs to be much stronger to be convincing." As a result of this announcement, the price of Allos shares fell $2.09, or 45% to close at $2.55 on extraordinary volume.
Plaintiffs filed an amended Complaint on August 25, 2004. Defendants filed a Motion to Dismiss the amended Complaint on October 12. On October 11, 2005, the Court issued an Order granting Defendants' Motion to Dismiss. The case was dismissed with prejudice.
On November 17, 2005, Plaintiff filed a notice appealing the Court's Dismissal Order. On February 13, 2008, the Court of Appeals remanded the case to the District Court for the limited purpose of review and approval of the parties' settlement agreement.
The parties entered into a Stipulation and Agreement of Settlement on February 6, 2008. The Court granted preliminary approval of the Settlement on September 15. On January 29, 2009, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses, and entered Final Judgment.
The parties voluntarily dismissed the appeal on February 24, 2009.
On January 4, 2010, the Court approved distribution of the Settlement fund.
