The case was voluntarily dismissed without prejudice and without costs to the defendants. No additional suits have been filed as of September 8, 2008.
According to a press release dated October 29, 2007, the complaint charges Novartis and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Novartis engages in the research, development, manufacture, and sale of health care products.
The complaint alleges that throughout the Class Period, Novartis failed to disclose adverse information regarding the Company’s research into a potential new cancer drug, Tasigna, which caused the Company’s shares to trade at artificially inflated prices during the Class Period. On July 17, 2007, the Company issued a press release announcing that the FDA had requested a three-month extension in the regulatory review period for Tasigna. Following the FDA disclosure of the safety data for Tasigna, which defendants had known for several months, Novartis’s share price declined from $55.45 to $53.36 in two days.