In re ARIAD Pharmaceuticals, Inc. Securities Litigation
A $3.5 million recovery achieved
On January 9, 2014, Labaton Sucharow was appointed co-lead counsel in the securities class action involving ARIAD Pharmaceuticals, Inc. On January 19, 2018, the court preliminarily approved a $3.5 million settlement.
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.
Submit Proof of Claim
If you purchased or otherwise acquired shares of the publicly traded common stock of ARIAD during the period from December 11, 2012 through December 14, 2012, inclusive, you may be entitled to receive money from the proposed settlement. To be eligible for a payment, you must submit a Claim Form by April 26, 2018 in accordance with the instructions set forth in the Notice.
A Settlement Hearing has been scheduled for May 10, 2018 at 2:00 p.m. before the Honorable William G. Young in at the United States District Court for the District of Massachusetts, John Joseph Moakley United States Courthouse, 1 Courthouse Way, 5th Floor, Courtroom 18, Boston, Massachusetts 02210. If you have questions about the settlement, please contact Labaton Sucharow at firstname.lastname@example.org or 1-888-219-6877, or contact the Claims Administrator, Epiq, at (888) 524-4593.