By Nate Raymond

BOSTON, June 8 (Reuters) - Biogen BIIB.O has agreed to pay $18.9 million to resolve a lawsuit alleging that it misled investors about the commercial readiness of the pharmaceutical company's Alzheimer's disease drug Aduhelm.

• The proposed settlement agreement was filed on Friday in Boston federal court and would resolve a securities class action lawsuit pending since 2022.

• Aduhelm, once expected to be Biogen's next big blockbuster treatment, faced controversy over its accelerated approval in 2021 by the U.S. Food and Drug Administration without clear evidence of patient benefit.

• The company abandoned commercialization of Aduhelm in 2022 after a decision by Medicare to limit coverage for the drug severely restricted its use.

• U.S. District Judge William Young, who must approve the settlement, had initially tossed the case but revived it in 2024 after shareholder lawyers cited a congressional report.

• They claimed Biogen made misleading statements that Medicare coverage of Aduhelm was "automatically presumed" with FDA approval and that it consulted with payers about the drug's annual $56,000 price.

• Biogen, in a statement on Monday, said it continues to deny all allegations of wrongdoing or liability.

• The lead plaintiff is Oklahoma Firefighters Pension and Retirement System.

• Lawyers for the plaintiffs at Block & Leviton plan to seek court approval for attorneys' fees worth up to a third of the settlement plus reimbursement of up to $1.5 million in expenses, filings show.

• The case settled a month before a scheduled May 4 trial, with financial terms disclosed on Friday.

The case is Oklahoma Firefighters Pension and Retirement System v Biogen Inc, U.S. District Court for the District of Massachusetts, No. 1:22-cv-10200.

For the plaintiff: Michael Gaines of Block & Leviton

For Biogen: Michael Hines of Skadden, Arps, Slate, Meagher & Flom

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