Goodwin, a leading Global 50 law firm, announced today the release of 2016 Year In Review - Securities Litigation Against Life Sciences and Health Care Companies In The First Circuit, a report highlighting major securities class action decisions in the First Circuit and District of Massachusetts that have impacted and will continue to impact life sciences and health care companies in 2017 and beyond.
Produced by the firm’s Security and Shareholder Litigation group, the report analyzes the growing number of securities class actions filed nationally against life sciences and health care companies, including pharmaceutical, biotechnology, medical device and health care product and services companies. The report focuses on decisions issued by courts within the First Circuit in these actions in 2016 and early 2017, and also reviews pending cases in which decisions are expected to be issued in 2017.
“Last year, we saw significantly more securities class actions against life sciences and health care companies, and several important, detailed decisions issued by courts within the First Circuit, resulting in a rapidly evolving and complex legal landscape,” said Caroline Bullerjahn, a partner in Goodwin’s Securities Litigation and White Collar Defense Group and a co-author of the report. “Given these developments, it is even more important for life sciences and health care companies to understand these developments in order to make informed disclosure decisions.”
The number of securities class action litigations against life sciences and health care companies has steadily grown over the last several years, and spiked in the last year. In 2016, 80 class actions were filed in federal courts nationwide—almost double the 43 such actions in the year prior. The District of Massachusetts and First Circuit were among the most active jurisdictions in this space, with 13 such actions filed in 2015 and 2016 in the District of Massachusetts. In 2016 and early 2017, federal district courts in the District of Massachusetts and the First Circuit have issued several significant decisions dismissing virtually all claims against life sciences companies and their directors and/or officers.
“Gaining a better understanding of these particular cases and the legal landscape can help life sciences and health care companies proactively mitigate risk of securities litigation in a volatile time,” said Deborah Birnbach, a partner in Goodwin’s Securities Litigation and White Collar Defense Group and a co-author of the report.
To view the full analysis, download the report here.