The original complaint alleges that during the Class Period defendants violated the federal securities laws by issuing a series of materially false and misleading statements to the market about the Company and by failing to disclose material information about the Company's plan to merge with Genzyme and that when the market learned the truth, the price of Bioenvision securities increased substantially. The claims brought seek to recover the difference between the price for which members of the prospective class sold shares and the price for which they would have been able to sell shares had the Company timely disclosed its merger intentions.
On November 2, 2007, the Court appointed Bert Valadimir and Gary Thesling as co-lead plaintiffs and approved their selection of Squitieri & Fearon, LLP as lead counsel. The plaintiffs were given 20 days to file a consolidated amended complaint. On November 27, 2007, the plaintiffs filed a Supplemental Amended Class Action Complaint. On January 30, 2008, the defendants filed motions to dismiss.
On March 31, 2009, Judge Sidney H. Stein issued the Opinion and Order #97341. According to the Order, Plaintiffs either have not alleged a duty to disclose the merger discussions or have failed to set forth their securities fraud claims with the requisite level of particularity. Plaintiffs therefore have failed to state a claim upon which relief can be granted. The Bioenvision defendants motion to dismiss the complaint pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure is granted without prejudice. Perseus-Soross motion to dismiss is also granted without prejudice. If plaintiffs intend to submit a second supplemental amended complaint, they shall do so within 14 days of the entry of this Opinion and Order.
On April 16, 2009, the lead plaintiffs filed a Second Amended Class Action Complaint. On April 29, 2009, an Order was filed withdrawing the Second Amended Complaint and allowing the filing of a Third Amended Complaint. On May 1, 2009, the lead plaintiffs filed a Third Amended Complaint. On June 8, 2009, the defendants filed a motion to dismiss the Third Amended Class Action Complaint. On July 10, 2009, a Stipulation and Order was filed withdrawing the Third Amended Consolidated Class Action Complaint and entering the Memorandum and Opinion dated March 31, 2009 as the final judgment. On July 14, 2009, the Court issued the Clerk’s Judgment entering the Opinion dated March 31, 2009 as a final judgment.
On August 13, 2009, the plaintiff filed a notice of appeal from the Opinion and Judgment dismissing the action. On May 21, 2010, the Court entered the Mandate from the Second Circuit Court of Appeals. The judgment of the District Court was affirmed.