According to the law firm press release, Accentia acquired an 81% interest in Biovest in June 2003. As of September 30, 2012, Accentia owned approximately 59% of Biovest’s outstanding common stock. The BiovaxID vaccine being developed by Biovest is and has been the most important part of Accentia’s business and financial prospects. Biovest and Accentia have common management. Biovest is a biotechnology company in the business of developing therapeutic cancer vaccines. Biovest conducted two Phase II clinical trials, and one Phase III clinical trial of BiovaxlD, which was completed in 2008.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business and operations. Specifically, Defendants made false and/or misleading statements concerning, and/or failed to disclose, among other things: that the FDA informed Biovest that the results of a Phase III clinical trial for BiovaxID, a potential vaccine for the treatment of non-Hodgkin’s lymphoma, did not support an application for approval of BiovaxID. Despite this information, Defendants made numerous statements in press releases and securities filings that gave the misleading impression that the trial results were statistically significant and that Biovest was on track to obtain FDA approval.
On August 14, 2012, Biovest issued a press release announcing what it described as a “formal clinical guidance meeting with the U.S. FDA,” and disclosed that the FDA required that Biovest conduct a second Phase 3 clinical trial of BiovaxlD. The August 14, 2012 press release identified Biovest as a majority-owned subsidiary of Accentia with Accentia’s trading symbol. Also on August 14, 2012, Biovest filed its Form 10-Q with the SEC for the quarter ended June 30, 2012, in which Biovest disclosed that it had met with the FDA and that the FDA had recommended a second Phase 3 clinical trial.
On this news, Accentia’s shares declined $0.05 cents or 23% percent to close at $0.17 on August 14, 2012 and again on August 15, 2012 shares fell $0.06 cents or 35% to close at $0.11 cents on August 15, 2012.
On December 4, 2013, the Court issued an Order consolidating cases, appointing lead plaintiffs, and approving lead counsel. Lead Plaintiffs filed a consolidated complaint on January 21, 2014.
On September 4, 2014, the parties filed a Stipulation of Settlement. This Settlement was preliminarily approved by the Court on October 8. On February 3, 2015, the Court issued an Order granting final approval of the Settlement and closing this case.