The original complaint charges thae defendants and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The defendants are a neuroscience-based biotechnology company.
The complaint alleges that during the Class Period, defendants made materially false and misleading statements about bapineuzumab, a drug the defendants was developing in association with another company for the treatment of Alzheimer’s disease. Specifically, defendants failed to disclose unfavorable results from a Phase II clinical study of bapineuzumab that the defendants and the other company conducted. When those results were finally disclosed, the price of the defendants’ ADRs plunged from $33.75 to $19.63 in one day.
On May 11, 2009, Judge Alvin K. Hellerstein granted the motion to appoint Tyne & Wear Pension Fund as lead plaintiff of the consolidated cases and approved its choice of lead counsel, the firm of Coughlin Stoia Geller Rudman & Robbins LLP. The lead plaintiff shall serve the Consolidated Amended Complaint by July 17, 2009. The Consolidated Amended Complaint was filed on August 17, 2009. The defendants responded by filing a motion to dismiss on December 11, 2009.
On October 19, 2010, Judge Alvin K. Hellerstein removed Tyne & Wear Pension Fund as lead plaintiff due to recent decision in Morrison v. National Bank: of Australia. The motion of Elan Corporation is denied without prejudice. Elan Corporation filed a new motion to dismiss on November 19, 2010.
On March 18, 2011, Judge Alvin K. Hellerstein granted in part and denied in part the motion to dismiss. According to the Order, for the reasons provided on the record, I hold that Morrison precludes any claims based on purchases of Elan Corporation stock or call options on such stock. As to purchases of American Depositary Receipts ("ADRs") or call options on such ADRS, I hold that Morrison does not compel dismissal at the pleadings stage. I therefore grant the motion to dismiss in part and deny it in part. Within one week of this Order, Plaintiffs shall file amended complaints eliminating all claims foreclosed by Morrison.
On March 25, 2011, an Amended Consolidated Complaint was filed, with an extended class period. The defendants filed a motion to dismiss on April 6, 2011. On June 24, 2011, Judge Alvin K. Hellerstein granted the motion to dismiss with leave to amend. By July 29, 2011, Plaintiffs' counsel may file a single, coordinated brief setting forth grounds for allowing them to amend their Complaints.
According to the Summary Order signed by Judge Alvin K. Hellerstein on August 9, 2011, the judgment found there was no basis to permit Plaintiffs to amend their Complaints. The cases remain dismissed, with prejudice and without costs. The Clerk's Judgment was filed on August 15, 2011, and the cases are now closed.