Gainey McKenna & Egleston Announces a Class Action Lawsuit Has Been Filed Against Biogen, Inc. (BIIB)
NEW YORK, May 23, 2024 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the District of Colorado on behalf of all persons and entities who purchased securities of Biogen, Inc. (“Biogen” or the “Company”) (NASDAQ: BIIB) between February 3, 2022 and February 13, 2024, inclusive (the “Class Period”).
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) Biogen had overstated its efforts to enhance its transparency, corporate governance, and compliance controls and procedures, as well as the efficacy of those controls and procedures; (2) accordingly, Biogen maintained inadequate compliance controls and procedures in connection with its business operations in foreign countries; (3) Biogen and/or its employees were engaged in unlawful or otherwise improper conduct in several foreign countries; (4) the foregoing subjected Biogen to a heightened risk of governmental and/or regulatory scrutiny and enforcement action, as well as significant legal, financial, and reputational harm; (5) Biogen overstated the strength of its AD-related product portfolio, including Biogen’s and Eisai Co., Ltd.’s efforts and success in launching and providing access to Leqembi; (6) Biogen also downplayed the negative impact that its acquisition of Reata Pharmaceuticals, Inc. would have on its fiscal year (“FY”) 2023 non-GAAP diluted earnings per share (“EPS”); and (7) all the above were likely to have a significant negative impact on Biogen’s 2023 results.
The Complaint further alleges that on November 8, 2023 Biogen negatively revised non-GAAP diluted EPS guidance for FY 2023 in a range of $14.50 to $15.00 per share, significantly below its previous guidance of FY 2023 non-GAAP diluted EPS of $15.00 to $16.00 per share, citing approximately $0.75 of dilution from its acquisition of Reata. On this news, the price of Biogen stock fell nearly 6%. The Complaint also alleges that on January 8, 2024 Biogen’s CEO, Christopher A. Viehbacher, discussed challenges associated with the launch of Leqembi and walked back prior expectations of having 10,000 patients on the drug by the end of March 2024. On this news, the price of Biogen stock fell.
Then, on February 6, 2024, news reports emerged that Eisai, Biogen’s partner in developing Leqembi, was facing challenges with the launch of the drug and that only 2,000 patients in the United States had been administered the drug, according to the complaint. On this news, the price of Biogen stock fell approximately 2%.
Investors who purchased or otherwise acquired shares of Biogen should contact the Firm prior to the July 22, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].
Please visit our website at http://www.gme-law.com for more information about the firm.
