The original complaint charges Biovail and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Biovail is a specialty pharmaceutical company engaged in the formulation, clinical testing, registration, manufacture, and commercialization of pharmaceutical products utilizing advanced drug-delivery technologies. The complaint alleges that during the Class Period, defendants made false and misleading statements about a drug in development called BVF-033, a salt formulation of bupropion, an antidepressant commonly known as Wellbutrin XL. Specifically, defendants’ statements failed to disclose that while the FDA required a single dose study to demonstrate the bioequivalence of generic Wellbutrin XL, defendants had submitted a multiple-dose study to demonstrate the bioequivalence of BVF-033. Thus, defendants’ FDA application for BVF-033 failed to meet the requirements set forth by the FDA such that approval was likely to be materially delayed. On July 20, 2007, before the market opened, the Company issued a press release announcing that it had received a non-approval letter from the FDA for its new drug application for BVF-033. As a result of this disclosure, Biovail’s stock price dropped from $25.51 per share to $20.03 per share in a single day.
On December 17, 2008, an Amended Class Action Complaint for Violations of Federal Securities Laws was filed with the court by the plaintiff. The defendants responded by filing a motion to dismiss the Amended Class Action Complaint on January 12, 2009. On April 9, 2009, the Judge Colleen McMahon denied as moot the appointment of lead plaintiff and approval of selection of lead counsel because the plaintiff is the only named party in this action.
According to an article dated May 11, 2009, a federal judge dismissed a proposed shareholder class action accusing Biovail Corp. of misleading investors about the antidepressant Aplenzin, calling the lawsuit a “prime exemplar of a legally baseless securities strike suit.” Judge Colleen McMahon of the U.S. District Court for the Southern District of New York on Friday granted Biovail's motion to toss the amended complaint in its entirety, saying the action was the very sort Congress wanted to discourage when it enacted the Private Securities Litigation Reform Act in 1995.
On June 05, 2009, a Notice Of Appeal was filed in the United States Court of Appeals for the Second Circuit from this Court's Order dated May 8, 2009, and entered on May 11, 2009.
On June 19, 2009, a Stipulation Of Dismissal And Order stating a joint stipulation to a dismissal, with prejudice.
On July 06, 2009, a Stipulation Of Dismissal Pursuant To Fed. R. App. P. 42(B) was filed with the court withdrawing an appeal from the United States District Court for the Southern District Of New York.