Global 50 law firm Goodwin announced today the release of its 2017 Year In Review - Securities Litigation Against Life Sciences and Health Care Companies, a report drawing notable trends and insights from major securities class action decisions issued in 2017 from the most active courts in the country, including the First Circuit, the District of Massachusetts, the Ninth Circuit and the District Courts of California, that will impact life sciences and health care companies in 2018.
Produced by the firm’s Securities Litigation and White Collar Defense Groups, the report analyzes the growing number of securities class actions filed nationally against pharmaceutical, biotechnology, medical device and health care product and services companies. These cases typically involve disclosures concerning issues that life sciences and health care companies often face, including the timing and length of clinical trials, adverse events arising during clinical trials or after approval, negative clinical trial results, discussions with and requirements imposed by the FDA, the likelihood of obtaining FDA approval, and future growth prospects and revenue projections relating to approved drugs or other healthcare-related products.
The number of securities class actions filed nationally against publicly traded life sciences and health care companies has steadily grown over the last several years. In 2016, the number of non-M&A related securities class actions against life sciences and health care companies skyrocketed, and that number slightly increased in 2017. Specifically, in 2017, 66 securities class actions against life sciences and health care companies were filed in federal courts nationwide, as compared to 64 such actions in 2016 and only 42 such actions in 2015.
“While life sciences and health care companies have increasingly become targets for securities class actions given their stock price volatility, these cases are being dismissed at a greater rate than in years past. Approximately 24% of lawsuits filed in 2017 have already been dismissed by federal courts,” said Caroline Bullerjahn, a partner in Goodwin’s Securities Litigation and White Collar Defense Group and a co-author of the report. “In analyzing the decisions from 2017 and cases to watch in 2018, we’ve detailed some significant findings companies operating in these sectors should be mindful of in order for them to make informed disclosure decisions.”
“The First and Ninth Circuits are the epicenters for securities litigation against life sciences and health care companies,” said Michael Jones, a partner in Goodwin’s Securities Litigation and White Collar Defense Group and a co-author of the report. “We hope this report offers companies in this sector useful insight and analysis concerning the evolving legal landscape, which can help them proactively mitigate their risk of future securities litigation.”
To view the full analysis, download the report here.