Supreme Court Prepares to Hear Amgen's Challenge to Securities Fraud Lawsuit
Posted 12 June 2012 | By
The Supreme Court of the United States (SCOTUS) said it agreed to hear a challenge from life sciences manufacturer Amgen regarding a lawsuit alleging the company inflated its stock price by misleading investors about the safety of its anemia drugs, Aranesp and Epogen.
Amgen is reportedly contesting the class-action nature of the lawsuit, which it says could have the perverse effect of placing severe financial pressures on companies if allowed to stand. "At issue," explains Pharmalot, "is whether investors must prove that they relied on misrepresentations in order to bring a class-action lawsuit."
Amgen contends there ought to be a higher bar set for the certification of class action lawsuits, and investors should have the onus put on them to prove the "material" nature of a harm allegedly perpetrated by the company.
Also at issue is when investors must prove those harms-at the beginning of the litigation process before being certified as class action lawsuit, or after certification?
Both issues are set to be examined by the court after the start of its October 2012 term, with a decision likely to be rendered several months thereafter.
Pharmalot - Supremes to Review Amgen Stock Fraud Case
The Wall Street Journal - High Court to Hear Amgen Challenge
Bloomberg - Amgen Gets Supreme Court Review of Stock Fraud Lawsuit
Reuters - Allergan suit proceeds, to impact derivative cases