Labaton Sucharow Files Class Action Lawsuit on Behalf of Biogen Inc. InvestorsNEW YORK (October 24, 2016) – Labaton Sucharow LLP (Labaton Sucharow) announces that on October 20, 2016, the Firm filed a securities class action lawsuit on behalf of Electrical Workers Pension Fund, Local 103, International Brotherhood of Electrical Workers (Local 103) against Biogen Inc. (Biogen or the company), and certain of its senior executives (collectively, the defendants). The action, Electrical Workers Pension Fund, Local 103, IBEW v. Kingsley, No. 16-cv-12101 (D. Mass.), asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the Exchange Act), and U.S. Securities and Exchange Commission (SEC) Rule 10b-5 promulgated thereunder, on behalf of all persons or entities who purchased or otherwise acquired the publicly traded securities of Biogen from July 23, 2014 through July 23, 2015, inclusive (the class period).
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, the defendants violated provisions of the Exchange Act by issuing false and misleading statements concerning the safety profile and growth prospects of Tecfidera, an immunosuppressant that is prescribed to treat multiple sclerosis (MS) and Biogen’s main driver of revenues during the class period. Specifically, the action alleges that Biogen publicly touted Tecfidera’s attractive safety profile and solid growth trajectory but was aware that Tecfidera was weakening the immune system for MS patients taking the drug causing physicians to discontinue prescriptions of Tecfidera.
The true state of 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 it announced the death of a patient linked to Tecfidera. 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 the long term outlook “remain[ed] strong.” Finally, on July 24, 2015, Biogen 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 company’s common stock plummeted from $385.05 per share at the market close on July 23, 2015 to $300.03 per share at the market close on July 24, 2015, a decline of more than 22 percent.
If you purchased or acquired the publicly traded securities of Biogen during the class period, you are a member of the class and may be able to seek appointment as lead plaintiff. Lead plaintiff motion papers must be filed with the U.S. District Court for the District of Massachusetts no later than December 23, 2016. The lead plaintiff is a court-appointed representative for absent members of the class. You do not need to seek appointment as lead plaintiff to share in any class recovery in this action. If you are a class member and there is a recovery for the class, you can share in that recovery as an absent class member. You may retain counsel of your choice to represent you in this action.
If you would like to consider serving as lead plaintiff or have any questions about this lawsuit, you may contact Francis P. McConville, Esq. of Labaton Sucharow, at (800) 321-0476, or via email at firstname.lastname@example.org.