According to the Complaint, non-Party Savient was a specialty biopharmaceutical company focused on commercializing KRYSTEXXA throughout the world. KRYSTEXXA is indicated in the United States for the treatment of chronic gout in adult patients refractory to conventional therapy, a condition that we refer to as refractory chronic gout, or RCG.
The Complaint alleges that Savient’s Board had retained Lazard Frères & Co. LLC (“Lazard”) to, among other things, explore a sale of the Company in March 2013. Far from merely evaluating strategic alternatives from “time to time,” Savient was engaged in an active solicitation and sales process. In addition, although the Company had repeatedly represented that it had sufficient cash and cash equivalents to fund anticipated levels of operations until at least the second quarter of 2014 and, subsequently, for at least twelve months from August 2013, the Company failed to disclose that in September 2013, the Company had updated its long term plan for a stand-alone restructuring of Savient under which it was projected that the Company would experience a significant short term revenue drop, which could result in the Company exhausting its cash in the first quarter of 2014.
The Complaint further alleges that on October 15, 2013, only two months after falsely assuring the market that it had an adequate cash position to fund operations for an additional 12 months, and after misrepresenting the Board’s efforts to engage in strategic alternatives, Savient announced that it had elected to file voluntary petitions for reorganization under Chapter 11 of Title 11 of the United States Code in the United States Bankruptcy Court for the District of Delaware.
On the news of the bankruptcy filing, the price of Savient common stock fell approximately 88%, from a close of $0.5737 per share on October 14, 2013 to a close of $0.0716 on October 15, 2013 on extremely high trading volume.
On May 29, 2014, the Court appointed Lead Plaintiff and approved their selection of Lead Counsel. On June 30, the Lead Plaintiff filed an amended complaint.
On August 20, 2015, the Court issued an Order granting Defendants' motion to dismiss and closing this case.