According to a press release dated November 10, 2011, the complaint charges the Company and certain of its officers and directors with violations of the federal securities laws.
Specifically, the plaintiffs charge that the Company issued false and misleading statements concerning the Company's potential new drug for the treatment of Systemic Lupus Erythematosus, a chronic, life-threatening autoimmune disease. The Complaint alleges that defendants failed to disclose that the new drug was associated with suicide in clinical drug trials conducted by the Company.
The Complaint alleges that when the U.S. Food and Drug Administration posted its analysis of the new drug on the Internet on November 12, 2010, investors learned for the first time of the association between the new drug and suicide in clinical trials, causing the Company’s common stock price to fall. Meanwhile, the Complaint alleges, during the Class Period, the company sold over 44 million shares of its common stock in public offerings at artificially inflated prices, receiving $850 million in net proceeds.
On March 22, 2012, the Court issued an Order consolidating cases 11-cv-3231 as the lead case and 11-cv-3353 as the member case; and appointing lead plaintiff and lead counsel.
On April 27, 2012, plaintiff filed an Amended Consolidated Complaint.
On March 26, 2013, the Court issued an Order granting the Defendants' motions to dismiss. The Clerk was directed to close this case.