Schering-Plough will pay $165 million to resolve a class action lawsuit alleging it failed to disclose manufacturing issues that delayed FDA approval for its allergy drug Clarinex.
The plaintiffs claim Schering-Plough violated federal securities laws by failing to disclose the alleged depth and severity of manufacturing issues affecting plants in New Jersey and Puerto Rico, according to a recent company filing with the SEC.
Plaintiffs in the suit had acquired Schering-Plough shares from July 25, 2000, to Feb. 15, 2001. The company’s failure to disclose the extent of its manufacturing problems falsely implied there were no roadblocks to obtaining approval for Clarinex (desloratadine), according to court documents. The plaintiffs claim they were harmed because they bought Schering-Plough’s stock at prices that were artificially inflated by the company.
Drug GMP Report
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