Securities Class Actions in the Life Sciences Sector

This year-in-review addresses developments in securities class actions brought against life sciences companies in 2015. We begin with an overview and analysis of trends in decisions involving life sciences companies with products at two distinct stages of development—pre- and post-FDA approval. Next, we provide summaries of the 34 federal district court and appellate court decisions surveyed. Finally, we catalog the new securities class action complaints filed against life sciences companies in 2015.

At the most basic level the cases analyzed share a common feature. In each, a life sciences company suffered a setback that, when publicized, was followed first by a stock price decline and then by litigation initiated by shareholders seeking to recover investment losses. Such setbacks can, of course, occur at any stage of a company’s development, but in the life sciences sector—given particular issues relating to drug development, regulatory approval, and continued regulatory oversight of manufacturing, marketing and sales activities—the setbacks are clustered in a few obvious stages of a company’s life cycle.

We believe that analyzing legal developments by reference to the stage of drug or device development at which the setback occurs may yield useful insights and assist in risk mitigation. Accordingly, this year-in-review is structured with reference to the following stages:

Pre-Approval: Clinical Trials and Pre-Clinical Studies

Post-Approval: Launch and Marketing of the Product

We hope you enjoy the Securities Class Actions in the Life Sciences Sector: 2015 Annual Survey.

If you have any questions regarding this update, please contact the Sidley lawyer with whom you usually work or one of the following Sidley lawyers:

Sara B. Brody

+1 415 772 1279

sbrody@sidley.comNorman J. Blears

+1 650 565 7103

nblears@sidley.comRobin E. Wechkin

+1 206 262 7680

rwechkin@sidley.comSarah A. Hemmendinger

+1 415 772 7413

shemmendinger@sidley.com

Sidley Securities and Shareholder Litigation Practice

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