In re ARIAD Pharmaceuticals, Inc. Securities Litigation
Status: Ongoing Case
Investors win appellate ruling in this securities class action against Ariad Pharmaceuticals.
On January 9, 2014, Labaton Sucharow was appointed co-lead counsel in the securities class action involving ARIAD Pharmaceuticals, Inc.
The lead plaintiffs allege that during the class period, December 12, 2011 through October 30, 2013, ARIAD and certain of its officers told shareholders that the company’s proprietary chronic myeloid leukemia drug, ponatinib, trade-named “Iclusig,” was safe and well-tolerated by patients. Lead plaintiffs allege that, in reality, subjects in company-sponsored clinical trials of ponatinib were experiencing an array of dangerous cardiovascular side effects and that the truth about the drug’s cardiovascular dangers was concealed from investors. As a result, when the truth later emerged in a series of public disclosures, the share price for ARIAD’s stock plummeted 91 percent from its class period high.
The lead plaintiffs also assert strict liability and negligence claims related to a secondary offering conducted by the company in January 2013. These claims allege that the registration statement, prospectus and incorporated documents issued in connection with the offering contained materially untrue statements and omissions of material fact regarding ponatinib.
The court granted the defendants’ motion to dismiss on March 25, 2015. A notice of appeal was filed and on November 28, 2016, the First Circuit reversed the district court's dismissal.
The case is In re ARIAD Pharmaceuticals, Inc. Securities Litigation, No. 13-12544 (WGY). The lead plaintiffs are Joseph Bradley, City of Fort Lauderdale Police & Fire Retirement System, Pension Trust Fund for Operating Engineers and Automotive Industries Pension Trust Fund and William A. Gaul, D.M.D. The lead plaintiffs represent a class of persons who purchased or acquired securities of ARIAD during the class period. The defendants are ARIAD Pharmaceuticals, Inc., its Chief Executive Officer, Chief Financial Officer, Chief Medical Officer, Chief Scientific Officer, certain current members of the board of directors of the company and the underwriters of the offering.
ARIAD Pharmaceuticals, based in Cambridge, Massachusetts, is a biotechnology company that focuses on the development of oncology treatments, including ponatinib, which is intended to treat certain types of leukemia.