Key Securities Litigation Issues for Life Sciences Cos.
The life sciences industry has become a priority target for shareholder plaintiff’s lawyers. According to Cornerstone Research’s 2015 annual study, securities class action filings against pharmaceutical and medical device companies have risen for three consecutive years and accounted for approximately 32 percent of all securities class action filings nationwide during 2015. Many of these cases involve adverse U.S. Food and Drug Administration decisions, clinical holds, unfavorable study results and undisclosed safety or efficacy problems. Fortunately, pharmaceutical and medical device companies can mitigate the risk of securities litigation by implementing prudent disclosure practices and by proactively reviewing their disclosures with outside counsel.