Bethel Finance news:
A Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) shareholder today filed a request for a NIS 2 billion class-action lawsuit against the company, claiming that it provided misleading information about the publication of the results of the Phase III clinical trial of its oral multiple sclerosis treatment, Laquinimod.
In the statement of claim, the claimant says that, on April 11, Teva notified the TASE that it would present new information about the results of a study on drugs and treatments for multiple sclerosis and Parkinson's disease, among other things. The claimant says that the notice stated that the information would be presented at the American Association of Neurology Annual Meeting in Honolulu, Hawaii.
The statement of claims says that 30% of Teva's revenue comes from its multiple sclerosis treatments, especially sales of Copaxone, which totaled $3.3 billion in 2010. The claimants says that since the Copaxone market has been opened to competition, which will severely affect Teva's sales, Teva began development of Laquinimod to compensate for the drop in its profits and to keep its share of the market for multiple sclerosis drugs.
The claimant says that Teva first presented to the 5,000 participants at the conference a synopsis of the results of the clinical trials without notifying the public, and contravening its notice to the TASE, which stated that the information would be published at later dates. He claims that, as a result, participants at the conference obtained an unfair advantage over all other Teva shareholders. He also claims that, as a result, rumors spread about the results of the trial, which caused Teva's share price to fall 3.4%.
The claimant says that Teva lent its hand to a situation in which crucial information about it, and which could substantially affect the value of its shares, was liable to leak, as in fact happened, and in a manner that would cause it to be abused, as in fact happened.
The claimants says that Teva was negligent and that its fault misled investors and that this is reason for the lawsuit.
No comments:
Post a Comment