Biogen to pay $18.9 million to settle investors' claims over Alzheimer's drug

Biogen

Biogen

BIIB

0.00

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

Read more:

Biogen and its investors both want US appeals court to clarify class certification

Judge axes Biogen class action, rips shareholder lawyers for 'constant misrepresentation'


This page is machine-translated. Sahm tries to improve but does not guarantee the accuracy and reliability of the translation, and will not be liable for any loss or damage caused by any inaccuracy or omission of the translation. *Disclaimer: The above content only represents the author's personal position and opinion and does not represent any position of Sahm Capital Financial Company and Sahm cannot confirm the authenticity, accuracy, and originality of the above content. Investors should consider the risks of investment products in light of their circumstances before making any investment decisions. When necessary, please consult a professional investment advisor. Sahm does not provide any investment advice, nor does it make any commitments and guarantees.