Case Page

 

Case Status:    ONGOING    
On or around 10/26/2016 (Ongoing date of last review)

Filing Date: July 19, 2016

According to the law firm press release, Emergent is a specialty biopharmaceutical company. Emergent's anthrax vaccine, BioThrax (Anthrax Vaccine Adsorbed) ("BioThrax"), is the only one licensed by the U.S. Food and Drug Administration ("FDA"). In September 2011, Emergent entered into a five-year procurement contract with the U.S. government for 44.75 million doses of BioThrax. By the start of the Class Period, Emergent was reporting it had sold all of its BioThrax on hand and was working on a massive expansion of its BioThrax production facilities.

The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's business and financial prospects. Specifically, with no reasonable basis to believe that the Company's renewal of its contract with the U.S. government would call for the same level of, much less increased, purchases of BioThrax, Emergent claimed it remained on track to receive the lucrative renewal of its five-year exclusive anthrax vaccine procurement contract. Emergent also repeatedly emphasized an ongoing strong demand for BioThrax in light of the U.S. government's funding of Emergent's massive expansion of its BioThrax production facility, claiming with no reasonable basis that the expansion would enable the Company to manufacture some 20 to 25 million additional doses of BioThrax annually, which the U.S. government would purchase over the following five-year period in order to build the U.S. Strategic National Stockpile ("SNS") of anthrax vaccine to 75 million doses. As a result of defendants' materially false and misleading statements, Emergent common stock traded at artificially inflated prices, reaching a Class Period high of $43.95 per share, and enabling certain of the defendants to sell their personally held shares of Emergent common stock for proceeds of over $14.5 million.

Then on June 22, 2016, before the open of trading, Emergent announced that the U.S. government had issued two official solicitation notices indicating that it would only be purchasing 29.4 million doses of the BioThrax vaccine for its SNS over the following five years – approximately one-third less than the 44.75 million doses in the original contract and far less than the 75 million doses the Company had led the investment community to believe the U.S. government sought to purchase. Emergent also disclosed that instead of more first-generation BioThrax anthrax vaccine, the U.S. government was seeking to procure a newer, faster-working next-generation anthrax vaccine, once one was approved, and that it was putting its supply bid for the rest of its anthrax vaccine procurement out to other companies, such that Emergent stood to lose its lucrative exclusivity. In response to this news, the price of Emergent stock declined from a close of $39.32 per share on June 21, 2016 to a close of $31.33 per share on June 22, 2016.

The Court issued an Order appointing Lead Plaintiff and Counsel on October 26, 2016.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Biotechnology & Drugs
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: EBS
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: D. Maryland
DOCKET #: 16-CV-02625
JUDGE: Hon. Roger W Titus
DATE FILED: 07/19/2016
CLASS PERIOD START: 01/11/2016
CLASS PERIOD END: 06/21/2016
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Brown, Goldstein & Levy LLP
    120 E. Baltimore Street , Suite 1700, Brown, Goldstein & Levy LLP, MA 21202
    410.962.1030 410.962.1030 · info@browngold.com
  2. Holzer & Holzer, LLC
    1117 Perimeter Center West, Suite E-107, Holzer & Holzer, LLC, GA 30338
    770.392.0090 770.392-0029 · mfistel@holzerlaw.com
  3. Robbins Geller Rudman & Dowd LLP (Melville)
    58 South Service Road, Suite 200, Robbins Geller Rudman & Dowd LLP (Melville), NY 11747
    631.367.7100 631.367.1173 ·
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