Hemispherx Biopharma Securities Fraud Class Action Lawsuit
By John Curran
The federal Food and Drug Administration has been the root of many legal claims in terms of inaction, but according to a recent class action lawsuit, the agency stepped up. Hemispherx Biopharma (NYSE: HEB) allegedly mishandled research on its key drug Ampligen. A stock fraud class action lawsuit is impending.
The medication would have been used to treat chronic fatigue syndrome. Unfortunately, while financial analysts argue Ampligen may still be approved, the FDA said that the data compiled covered too small a sample size. Stock fraud lawsuit lawyers have filed claims using the fact that the FDA is not thrilled with the medical research to allege that Hemispherx misled investors who bought stock between March 19 and the date of the report.
Medical studies and their results have been a key factor in a number of recent securities fraud cases. Companies see wild fluctuations in prices based on the approval or lack thereof in major products. For their financial health, it can be critical to try and maintain optimism, even if the science does not back it. The gap between the completion of the medical trials and any announcement is also fertile ground for securities fraud.
Major investment banks and hedge funds may take significant positions in pharmaceutical companies, betting on the large uptick in prices if a key drug is approved. However, like Hemispherx Biopharma, not all trials bring good tidings. So in addition to potential corporate malfeasance, securities fraud lawsuit attorneys frequently bring claims based on insider trading.
In either case, it affects small investors as well as institutions that provide pensions for older workers such as teachers. That means that legal remedies are often the only way to recoup losses that shareholders could not have reasonably expected. A class action often results in a smaller settlement than one would expect based on the actual value lost. On the other hand, it could make the difference for some investors who relied on these stocks to help pay for retirement needs.
People who think that they have been the victims of insider trading or inaccurate corporate reporting clearly have legal options to consider. If they want to recoup their losses, a visit to the Securities Fraud, Stock Fraud Investment Class Action Lawsuit Investigation is a good place to start. A free legal review of any potential claim is available there. Consulting with a securities fraud lawsuit lawyer is the first step towards a jury award or settlement.
Updated January 10th, 2013
All securities fraud class action and lawsuit news updates are listed in the Stocks & Securities section of Top Class Actions
One thought on Hemispherx Biopharma Securities Fraud Class Action Lawsuit
Oxy ~ that is hysterical ~ I wodenr how many times a mom says what is that in your mouth? He had sushi ! He probably dumped the fish food again so he could have more fish. LOLFriends were in Sears looking at new bathroom fixtures in one of the displays. Turned around to see their 4 year old little boy with his pants down sitting on a display toilet AND USING IT. Mom pretended she didn\’t know him and walked away, Dad had to claim the child from a store employee. They never went in Sears again.