LAWSUITS NEWS & LEGAL INFORMATION
Schering-Plough Settles Clarinex Class Action for $165 Million
This is a settlement for the Securities/Stock Fraud lawsuit.
Newark, NJ: A $165 million settlement has been approved by a US District judge in the investor class action brought against Schering Plough. The suit alleged that the pharmaceutical company made fraudulent statements to investors about its allergy medicine, Clarinex.
Specifically, the suit alleged that between May 2000 and February 2001 Schering-Plough made false statements that did not adequately disclose "serious and widespread deficiencies" in its quality and manufacturing operations. This, in turn, risked delay of FDA approval of Clarinex, a successor drug to Claritin. Then, on February 15, 2001, the FDA cited manufacturing deficiencies at Schering-Plough's Puerto Rico and New Jersey facilities, and subsequently withheld approval of Clarinex. The following day the company's shares fell 15 percent.
According to media reports, as many as 280,000 investors could be affected by the settlement. The lawsuit has been underway for seven years. Legal fees of $37.95 million were also approved as part of the settlement.
Published on Jan-5-10
Specifically, the suit alleged that between May 2000 and February 2001 Schering-Plough made false statements that did not adequately disclose "serious and widespread deficiencies" in its quality and manufacturing operations. This, in turn, risked delay of FDA approval of Clarinex, a successor drug to Claritin. Then, on February 15, 2001, the FDA cited manufacturing deficiencies at Schering-Plough's Puerto Rico and New Jersey facilities, and subsequently withheld approval of Clarinex. The following day the company's shares fell 15 percent.
According to media reports, as many as 280,000 investors could be affected by the settlement. The lawsuit has been underway for seven years. Legal fees of $37.95 million were also approved as part of the settlement.
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