Biogen Inc. (Nasdaq: BIIB)
A class action has been filed in the United States District Court for the District of Massachusetts on behalf of purchasers of Biogen Inc. (Nasdaq: BIIB) common stock between July 23, 2014 and July 23, 2015, (the “Class Period”).
The complaint charges Biogen and certain of its officers with violations of the Securities Exchange Act of 1934 (“1934 Act”). Biogen is a global biopharmaceutical company that develops and markets treatments for certain neurological, autoimmune and hematological diseases.
The complaint alleges that during the Class Period, defendants violated provisions of the 1934 Act by issuing false and misleading statements concerning the safety profile and growth prospects of Tecfidera, an immunosuppressant prescribed to treat patients with multiple sclerosis ("MS") and Biogen's main driver of revenues during the Class Period. Specifically, the complaint alleges that Biogen publicly touted Tecfidera's attractive safety profile and solid growth trajectory, but was aware that Tecfidera weakened the immune system of MS patients taking the drug, causing physicians to discontinue prescribing Tecfidera. As a result of these false statements and/or omissions, Biogen shares traded at artificially inflated prices during the Class Period, with its stock price reaching over $475 per share.
Biogen's false statements came to light through a series of partial disclosures beginning in late October 2014. Specifically, on October 22, 2014, Biogen was forced to partially disclose the safety risks of Tecfidera when the Company announced the death of a patient who had been treated with the drug. On April 24, 2015, the Company disclosed that the patient death announced in October 2014 was causing Tecfidera sales to grow "at an overall slower rate," but that the long-term outlook "remain[ed] strong." Finally, on July 24, 2015, the Company abruptly cut its revenue guidance in half, "based largely on revised expectations for the growth of Tecfidera," which it blamed on safety concerns following the patient death. On this news, the price of Biogen common stock plummeted from a close of $385.05 per share on July 23, 2015 to a close of $300.03 per share on July 24, 2015, a decline of more than 22%.
If you are a current shareholder and purchased stock between July 23, 2014 and July 23, 2015, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.
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