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Case Status:    DISMISSED    
On or around 03/31/2008 (Court's order of dismissal)

Filing Date: March 04, 2005

Plaintiffs appealed the lower court's ruling of dismissal and on September 15, 2008 the United States Court of Appeals issued a mandate withdrawing it.

According to an article dated March 31, 2008, a federal district judge has tossed out a proposed class action against Elan Corp. and its executives brought by investors who claim the Irish company artificially pumped up its stock price by misleading the public about problems connected to its multiple sclerosis drug Tysabri. U.S. District Judge Richard Holwell dismissed the suit Friday but gave the plaintiffs the chance to go back to the drawing board and file an amended complaint against the biotechnology company in the future, according to papers filed in the U.S. District Court for the Southern District of New York. “Because the court finds that plaintiffs have failed to adequately plead both materiality and scienter, we do not reach the remaining arguments offered by defendants in support of their motion to dismiss,” court documents stated. “Defendants' motion is granted, and plaintiffs' complaint is dismissed in its entirety.”

On February 16, 2007, a Consolidated Class Action Complaint was filed. The Defendants responded by filing a motion to dismiss the Consolidated Class Action Complaint. The motion is currently pending before the Court.

On August 20, 2005, the case was transferred from the U.S. District Court for the District of Massachusetts to the Southern District of New York. On August 9, 2005, the Court entered the Memorandum Opinion and Order #91980 signed by U.S. District Judge Richard J. Holwell consolidating all the SDNY actions and appointing the Institutional Investor Group as lead plaintiff and designating Milberg Weiss and Entwistle and Cappucci LLP as co-lead counsel. On February 24, 2006, the Court entered the Order consolidating all the actions and designating 05cv2860 as Lead Case.

The original complaint charges Elan and certain of its officers with violations of the Securities Exchange Act of 1934. Elan is engaged in the development and commercialization of TYSABRI, a vaccine designed to treat patients with multiple sclerosis (MS), slowing the progression of the disease and reducing incidents of relapses. Throughout the Class Period, defendants caused Elan to make a number of positive statements about the status of its clinical trials and the commercial potential of TYSABRI, causing Elan's stock to trade at artificially inflated prices. The Complaint alleges that Elan violated federal securities laws by issuing false or misleading information. Specifically, defendants failed to disclose and misrepresented the following material adverse facts: (i) that TYSABRI(r) (natalizumab), a monoclonal antibody for the treatment of Multiple Sclerosis (``MS''), posed serious immune-system side effects; (ii) 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; (iii) that defendants knew and/or recklessly disregarded documented facts that MS drugs can cause greater incidents of PML to occur; and (iv) 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.

Further, on or around February 28, 2005, Elan shocked the market by reporting that they were withdrawing TYSABRI from the market following reports of patients contracting PML, with at least one instance resulting in death. As a result of this announcement, Elan's shares plummeted, declining over 70% to approximately $8 per share on February 28, 2005.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Biotechnology & Drugs
Headquarters: Ireland

SECURITIES INFORMATION:

Ticker Symbol: ELN
Company Market: New York SE
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: S.D. New York
DOCKET #: 05-CV-10413
JUDGE: Hon. Joseph L. Tauro
DATE FILED: 03/04/2005
CLASS PERIOD START: 02/18/2004
CLASS PERIOD END: 02/25/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Johnson & Perkinson
    1690 Williston Road, Johnson & Perkinson, VT 05403
    802.862.0030 802.862.0060 · JPLAW@adelphia.net
  2. Krislov & Associates, Ltd.
    20 North Wacker Drive, Suite 1350, Krislov & Associates, Ltd. , IL 60606
    312.606.0500 312.606.0207 · Clint@krislovlaw.com
  3. Law Office of Peter A. Lagorio
    63 Atlantic Avenue, Law Office of Peter A. Lagorio, MA 02110
    617-367-4200 617-227-3384 · plagorio@conversent.net
  4. Milberg Weiss Bershad & Schulman LLP (New York)
    One Pennsylvania Plaza, 49th Floor, Milberg Weiss Bershad & Schulman LLP (New York), NY 10119
    212.594.5300 212.868.1229 · info@milbergweiss.com
  5. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  6. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 05-CV-02860
JUDGE: Hon. Joseph L. Tauro
DATE FILED: 02/16/2007
CLASS PERIOD START: 02/18/2004
CLASS PERIOD END: 02/28/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Entwistle & Cappucci LLP
    299 Park Avenue, 14th Floor, Entwistle & Cappucci LLP, NY 10171
    212.894.7200 212.894.7272 · info@entwistle-law.com
  2. Milberg Weiss & Bershad LLP (New York)
    One Pennsylvania Plaza, 49th Floor, Milberg Weiss & Bershad LLP (New York), NY 10119
    212.594.5300 212.868.1229 · info@milbergweiss.com
  3. Milberg Weiss Bershad & Schulman LLP (New York)
    One Pennsylvania Plaza, 49th Floor, Milberg Weiss Bershad & Schulman LLP (New York), NY 10119
    212.594.5300 212.868.1229 · info@milbergweiss.com
No Document Title Filing Date
No Document Title Filing Date