On May 17, 2007, Judge Bartle entered the final order and judgment dismissing the case with prejudice and finalizing the settlement, which totals $12,750,000. On May 31, 2007 Judge Martle approved counsels motions for attorney's fees in the amount of $3,187,500, that is, 25% of the settlement amount and for reimbursement of $203,609.06 in costs and other expenses.
On October 14, 2006, the plaintiff filed a motion to certify class, and on February 1, 2006, the Court entered the Memorandum and Order signed by U.S. Harvey Bartle III granting the motion for class certification.
As disclosed by the Company’s FORM 10-Q for the quarterly period ended June 30, 2005, between June 15, 2004 and July 19, 2004 six shareholder securities class action complaints were filed against the Company and certain of the Company’s senior officers in the U. S. District Court for the Eastern District of Pennsylvania, collectively the “Federal Class Actions.” Each complaint alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 arising from the Company’s May 24, 2004 press release announcing the approvable letter from the FDA indicating anidulafungin does not currently support a labeling for initial treatment of esophageal candidiasis. Each plaintiff sought to represent a class of Vicuron securities purchasers from January 6, 2003 through May 24, 2004, (except one complaint, whose putative class period begins March 17, 2003). The complaints sought compensatory damages, interest, attorneys’ fees, and injunctive and equitable relief. The Company is vigorously defending this litigation. On August 23, 2004, the Court issued an order consolidating the six actions. On October 7, 2004, the Court entered an order appointing a group of institutional investors (Massachusetts State Guaranteed Annuity Fund, Massachusetts State Carpenters Pension Fund, and Greater Pennsylvania Carpenters Pension Fund) as lead plaintiffs, the law firm of Lerach Coughlin Stoia Geller Rudman & Robbins as lead plaintiffs counsel, and the law offices of Marc S. Henzel as liaison counsel. The plaintiffs filed an Amended Complaint on December 6, 2004. The Amended Complaint alleges violations of Section 10(b) of the Securities Exchange Act of 1934, and violations of Section 11 of the Securities Act of 1933, against all of the defendants, including: the Company, three of the Company’s senior officers and seven of the Company’s directors. The Amended Complaint also alleges violations of Section 20(a) of the Securities Exchange Act of 1934 against the three officers. The Amended Complaint alleges a putative class period from January 6, 2003 through May 24, 2004, and seeks compensatory damages, interest, attorneys’ fees, and injunctive and equitable relief.
The original Complaint alleges that, during the Class Period, defendants artificially inflated the price of Vicuron stock by concealing negative material information concerning both the safety and efficacy of Anidulafungin, Vicuron's intravenous treatment of fungal infections which is the subject of late-stage clinical trials for the treatment of esophageal candidiasis, invasive aspergillosis, and invasive candidiasis/candidemia. Defendants concealed key adverse information regarding the development and commercialization of Anidulafungin, which raised serious concerns about the FDA's future approval of the drug. The partial disclosure of the contents of an FDA letter, dated Monday, May 24, 2004, detailing the failure of Vicuron to supply data necessary to support its claim that Anidulafungin can be used to treat esophageal candidasis, caused Vicuron shares to plummet $8.86 to $13.04, a loss of over 40% from the previous trading day and a loss of over 45% from its Class Period high of $23.90.