Biogen, Inc. (NASDAQ:BIIB) Class Action Lawsuit

A class action lawsuit has been filed against Biogen Inc.NASDAQ:BIIB) May 22, 2024. The plaintiffs (shareholders) alleged that they purchased BIIB shares at artificially high prices between February 3, 2022 and February 13, 2024 (the class period) and are now seeking compensation for their financial losses. Investors who purchased Biogen shares during this period can click here to learn how to join the lawsuit.

Biogen is a biotechnology company focused on developing treatments for neurology, neuropsychiatry, specialized immunology, and rare diseases. Of note, the company has a strong portfolio of drugs for the treatment of multiple sclerosis (MS), spinal muscular atrophy, and the defining pathology of Alzheimer’s disease (AD). Biogen and Eisai Co. Ltd. jointly launched Leqembi, an FDA-approved treatment for AD. The two companies initially planned to enroll 10,000 patients on Leqembi by the end of March 2024.

Biogen’s Misleading Claims

Plaintiffs allege that Biogen and three current and/or former members of its senior management team (the individual defendants) defrauded investors by repeatedly making false and misleading public statements about the Company’s business prospects (primarily with respect to its AD portfolio) and compliance policies during the period covered by the lawsuit.

According to the complaint, in one of the press releases, the company mentioned that it had presented data from the Phase 3 clinical trial of ADUHELM at the annual CTAD conference. Biogen stated that the studies “demonstrated a statistically significant correlation between reductions in plasma p-tau and less decline in cognitive and functional status (AD).” Additionally, in its SEC filing, Biogen noted that it had adequate compliance controls, policies, and procedures in the various countries in which it operated. Still, there were opportunities for violations of laws or regulations by employees or agents of the company.

Additionally, in its 2023 Compliance Report, Biogen stated that it had established and maintained a compliance program. The company added that this program was maintained in accordance with industry regulations and OIG (Office of the Inspector General of the US Department of Health and Human Services) guidance.

This is how the truth was revealed

The complaint accuses defendants of omitting factual information about the adequacy of certain controls and procedures, the strength of the company’s AD portfolio, and other matters from SEC filings and related materials. In doing so, defendants allegedly caused Biogen’s stock to trade at artificially high prices during the time at issue.

This information became apparent in a series of events that occurred between November 8, 2023, and February 14, 2024. These events included the announcement of disappointing financial results for the third quarter, fourth quarter, and full fiscal year 2024. Additionally, the lawsuit pointed to public statements about difficulties in launching Leqembi’s AD treatment.

Finally, on February 14, Biogen revealed that it had received a subpoena from the DOJ (Department of Justice) requesting information about its business operations in several foreign countries. The company said it had provided the SEC with information about that.

Biogen shares have fallen almost 12% since the beginning of the year, resulting in significant losses in shareholder profits.

Reservation