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In conjunction with our partner lawyers, we are currently investigating claims on behalf of current shareholders of Biogen Idec to determine whether a shareholder derivative lawsuit may be warranted. A shareholder derivative suit is a lawsuit instigated by a shareholder of a corporation, not on the shareholder’s own behalf, but on behalf of the corporation. The shareholder brings an action in the name of the corporation against the parties allegedly causing harm to the corporation. Often derivative suits are brought against officers or directors of a corporation for violations of fiduciary duties owed to the shareholders vis-a-vis the corporation. Any proceeds of a successful action are awarded to the corporation. Often, derivative suits can be a strong vehicle for corporate governance reform.
Our Experienced Derivative Lawyers and Attorneys Have Years of Experience Representing Shareholders in Numerous Derivative Lawsuit Cases.
In 2005, several derivative shareholder lawsuits were brought on behalf of Biogen Idec shareholders who suffered a financial loss as a result of the company’s decision to suspend sales of Tysabri, a drug used to treat Multiple Sclerosis. When it was first approved in 2004, Tysabri was touted as a breakthrough in the treatment of MS. Biogen Idec said it was suspending sales of Tysabri after a patient in a Phase III clinical trial testing a combination therapy of Tysabri and Avonex, Biogen’s other MS treatment, had contracted a potentially deadly brain infection called multifocal leukoencephalopathy, or PML, with a second case suspected.
In March 2005, a Biogen Idec shareholder in Delaware filed a derivative lawsuit charging that breaches of fiduciary duty by the Company’s Board of Directors for inadequate oversight of policies, practices, controls and assets, and for recklessly awarding executive bonuses despite alleged awareness of potentially serious side effects of Tysabri and the potential for related harm to the Company’s financial position. The plaintiff in the Delaware shareholder derivative lawsuit claimed that the Company’s former Executive Chairman, former general counsel and a director misappropriated confidential company information for personal profit by selling Biogen Idec stock while in possession of material, non-public information regarding the potentially serious side effects of Tysabri, and alleged that the Biogen Idec Board of Directors did not ensure that appropriate policies were in place regarding the control of confidential information and personal trading in Biogen Idec securities by officers and directors.
On March 9, 2005, two additional Biogen Idec shareholder derivative lawsuits were brought in the Superior Court of the State of California, County of San Diego, against Biogen Idec and its officers. The plaintiffs in these Biogen Idec shareholder derivative lawsuits also claimed breach of fiduciary duties, abuse of control, gross mismanagement, waste of corporate assets and unjust enrichment against all defendants. The plaintiffs also derivatively claimed insider selling in violation of California Corporations Code § 25402 and breach of fiduciary duty and misappropriation of information against certain defendants who sold Biogen Idec securities during the period of February 18, 2004 to the date of the complaints. The plaintiffs alleged that the defendants caused and/or conspired, aided and abetted and acted in concert in concealing and issuing, false and misleading press releases about the safety of Tysabri and its financial prospects which resulted in legal claims being asserted against the Company, irreparable harm to the corporate image of Biogen Idec, depression of its stock price and impairment of the Company’s ability to raise capital. The plaintiffs also alleged that certain defendants sold personally owned shares of Biogen Idec stock while in possession of material, undisclosed, adverse information.
Tysabri was reapproved and reintroduced to the market by Biogen Idec in 2006. But in February 2008, Biogen Idec announced that the drug had been linked to serious instances of liver damage. Following that announcement, shares of Biogen Idec fell more than 2%.
If you purchased Biogen Idec stock and suffered a financial loss because of the companies problems with Tysabri, you have valuable legal rights. Please contact us at 1-800-LAW INFO (1-800-529-4636) for a free consultation with one of our experienced shareholder derivative lawsuit attorneys.
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