According to the law firm press release, the complaint alleges that Vertex issued false and misleading public statements concerning a pharmaceutical study of its products VX-809 and Kalydeco. Specifically, the complaint alleges that at the start of the Class Period on May 7, 2012, Vertex announced positive "interim data" from its Phase 2 study of VX-809 and Kalydeco. This caused a significant increase in the Company's stock price -- from $37.41 to $58.12 per share. As Defendants continued heralding the positive and "unexpected" interim Phase 2 study results, the Company's stock traded as high as $64.85 on May 25, 2012. Certain of the individual Defendants took advantage of this stock price increase to sell approximately $30 million of Vertex stock.
On May 29, 2012, the Company announced that the exceptional results of the Phase 2 study of the two medications were grossly overstated. On this news, the Company's stock price fell from a close of $64.85 on May 25, 2012 to a close of $57.80 on May 29, 2012. Then, approximately one month later, on June 28, 2012, the Company again revised the test results downward. In response to this news, the Company's stock price plummeted from a close of $61.11 on June 27, 2012, to a close of $51.18 on June 28, 2012.
On December 21, 2012, the Court granted the City of Bristol Pension Fund’s motion, thereby appointing the Fund as lead plaintiff, and Scott+Scott LLP as lead counsel in this case.
On March 31, 2014, the Court issued an Order granting Defendants' motion to dismiss.