Settled: January 25, 2016
On January 25, 2016, the Honorable C. Darnell Jones II of the United States District Court, Eastern District of Pennsylvania granted final approval to an $8 million settlement reached between lead plaintiff and ViroPharma Incorporated (ViroPharma) and certain of its senior executives.
According to the court, this settlement is “an extremely favorable resolution for the Settlement Class given the risks attendant with securities litigation.” The court further described plaintiffs’ counsel as “highly experienced in this area of litigation and was chosen specifically due to their expertise in these matters.”
The action alleged that during the class period—December 14, 2011 through April 9, 2012—the defendants misrepresented and omitted material facts in violation of the Securities Exchange Act of 1934. In particular, ViroPharma's management misstated and failed to disclose facts concerning the company's ability to secure market exclusivity for Vancocin. As a result, ViroPharma's stock traded at artificially inflated prices.
On April 10, 2012, the company disclosed to the market that the FDA denied ViroPharma market exclusivity for Vancocin because the new label for the drug—the basis through which the company sought exclusivity—did not meet the statutory requirements for exclusivity. Moreover, the FDA approved three generic versions of Vancocin moving forward. On this news, the price of ViroPharma stock declined 22 percent, or $6.17 per share, from a closing price of $28.61 on April 9, 2012, to a closing price of $22.44 per share on April 10, 2012.
On May 16, 2014, the court denied the defendants' motion to dismiss in full.
The case is In re ViroPharma Incorporated Securities Litigation, Civil Action No. 2:12-02714. Labaton Sucharow represents lead plaintiff, Carpenters' Local 27 Benefit Trust Funds. The defendants are ViroPharma and certain of the company's former senior executives.
Submit Proof of Claim
To be eligible for a payment from the settlement, you must submit a Proof of Claim form by September 21, 2015 in accordance with the instructions set forth in the Notice.
A copy of relevant documents can be found in the links to the right.
If you have questions about the settlement, please contact Labaton Sucharow at email@example.com or 1-888-219-6877, or the Claims Administrator, GCG, at 1-844-322-8240.