Exposed drug-development misrepresentations at Celgene
Plaintiff(s):
Institutional investors who purchased Celgene common stock at artificially inflated prices
Case type / claims:
Securities fraud action alleging Celgene misrepresented the efficacy and commercial viability of key late-stage drug candidates. Claims include false and misleading statements about drug performance, revenue security and anticipated profitability.
Defendant(s):
Celgene Corporation and senior executives
Jurisdiction:
U.S. District Court for the District of New Jersey
Year:
Active
Outcome / allegations:
- Celgene allegedly concealed that a late-stage developmental drug lacked efficacy, ultimately abandoning it and taking a $1.6 billion impairment charge.
- Stock initially fell nearly 11% when the impairment was disclosed.
- When the full truth emerged, Celgene’s stock declined an additional 9%, causing investors to incur billions in losses.
