Boston Retirement System v. Alexion Pharmaceuticals Inc.
Status: Ongoing Case
On April 12, 2017, Labaton Sucharow LLP was appointed as co-lead counsel in a securities class action lawsuit against Alexion Pharmaceuticals, Inc (NASDAQ: ALXN) and certain of its senior executives. The action asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and U.S. Securities and Exchange Commission Rule 10b-5 promulgated thereunder, on behalf of all persons or entities who purchased or otherwise acquired Alexion common stock between January 30, 2014 and May 26, 2017, inclusive (the class period). Alexion is a biopharmaceutical company that develops and commercializes drugs to treat rare diseases—primarily a drug known as Soliris. Soliris costs between $500,000 and $700,000 a year, making it one of the world’s most expensive drugs.
On July 17, 2017, the lead plaintiffs filed a consolidated complaint that alleges that the defendants made materially misleading statements and omissions by failing to disclose that the company had relied upon a variety of illegal and improper tactics to “pull in” sales of Soliris—an unsustainable business practice that was not disclosed to investors during the class period. The markets started to learn that something was amiss at the company in November 2016, when a slew or revelations by law enforcement officials, investigative reports, and the company itself began to reveal Alexion’s illegal and improper sales tactics. As these revelations came to light, the company’s common stock price declined more than 30 percent—wiping out nearly $10 billion in shareholder value.
The case is Boston Retirement System v. Alexion Pharmaceuticals Inc., No. 16-cv-02127 (D. Conn.). The lead plaintiffs are Erste-Sparinvest KapitalanLagegesellschaft mbH and the Public Employee Retirement System of Idaho. Labaton Sucharow represents the Public Employee Retirement System of Idaho. The defendants are Alexion and certain of its senior executives.