Goodwin Publishes Report on Significant Developments in Securities Litigation Against Life Sciences and Health Care Companies

BOSTON–(BUSINESS WIRE)–Global 50 law firm Goodwin announced today the release of its third
annual 2018
Year In Review – Securities Litigation Against Life Sciences and Health
Care Companies
, a report drawing notable trends and insights
from securities class action decisions issued in 2018 by courts that are
among the most active in the country for such cases, including the First
Circuit, the District of Massachusetts, the Ninth Circuit and the
District Courts of California, that will impact life sciences and health
care companies going forward.

Produced by the firm’s Securities Litigation and White Collar Defense
Group, the report analyzes data concerning the near record number of
securities class actions filed nationally against pharmaceutical,
biotechnology, medical device and health care product and services
companies in 2018. These cases typically follow stock price drops after
disclosures concerning issues that life sciences and health care
companies often face, including adverse events arising during clinical
trials or after approval, negative clinical trial results, discussions
with and requirements imposed by the FDA, manufacturing issues, and
future growth prospects and revenue projections relating to approved
drugs or other healthcare-related products.

While the number of securities class actions filed nationally against
publicly traded life sciences and health care companies has
significantly grown over the last few years, the number of such cases
filed in 2018 declined slightly to 56 actions, down from 66 actions in
2017. However, filings against life sciences and health care companies
remained well above the historical average and these companies continue
to be the most frequent target of securities class actions as compared
to other industry sectors.

“Life sciences and health care companies continue to be targets for
securities class actions given their stock price volatility. While the
decisions issued in these cases in 2018 generally favored defendants,
the dismissal rate for such cases filed in 2018 dropped to approximately
16%, down from a 24% dismissal rate in 2017,” said Caroline
Bullerjahn
, a partner in Goodwin’s Securities Litigation and White
Collar Defense Group and a co-author of the report. “In analyzing the
decisions from 2018 and cases to watch in 2019, we’ve detailed some
significant holdings that companies operating in these sectors should be
mindful of in making disclosure decisions.”

“The First and Ninth Circuits continue to be epicenters for securities
litigation against life sciences and health care companies,” said Michael
Jones
, a partner in Goodwin’s Securities Litigation and White Collar
Defense Group and a co-author of the report. “We hope this report offers
companies in this sector useful insight and analysis concerning the
evolving legal landscape, which can help them proactively mitigate their
risk of future securities litigation.”

To view the full analysis, download the report here.

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and financial industries. Our unique combination of deep experience
serving

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Contacts

Somna Maraj
Goodwin
212.459.7212
[email protected]

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