Emergent BioSolutions Inc. Class Action Lawsuit
- Company Name
- Emergent BioSolutions Inc.
- Stock Symbol
- Class Period
- July 6, 2020 to March 31, 2021
- Motion Deadline
- June 18, 2021
- District of Maryland
The Emergent BioSolutions Inc. class action lawsuit charges Emergent and certain of its executives with violations of the Securities Exchange Act of 1934 and seeks to represent all persons or entities that purchased or otherwise acquired Emergent common stock from July 6, 2020 through March 31, 2021, inclusive (the “Class Period”). The Emergent class action lawsuit was commenced on April 19, 2021 in the District of Maryland and is captioned Palm Tran, Inc. – Amalgamated Transit Union Local 1577 Pension Plan v. Emergent BioSolutions Inc., No. 21-cv-00955.
Emergent is a specialty biopharmaceutical company that develops vaccines and antibody therapeutics for infectious diseases. In response to the COVID-19 pandemic, Emergent signed deals with Johnson & Johnson (“J&J”) and AstraZeneca worth a combined $875 million to provide contract development and manufacturing organization services to produce the companies’ COVID-19 vaccine candidates, and received another $628 million from the United States government as a part of Operation Warp Speed, for a total of $1.5 billion in COVID-19 deals.
The Emergent class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) Emergent’s Baltimore plant had a history of manufacturing issues increasing the likelihood for massive contaminations; (ii) these longstanding contamination risks and quality control issues at Emergent’s facility led to a string of U.S. Food and Drug Administration (“FDA”) citations; (iii) Emergent previously had to discard the equivalent of millions of doses of COVID-19 vaccines after workers at the Baltimore plant deviated from manufacturing standards; and (iv) as a result, defendants’ public statements about Emergent’s ability and capacity to mass manufacture multiple COVID-19 vaccines at its Baltimore manufacturing site were materially false and/or misleading and/or lacked a reasonable basis.
On March 31, 2021, media reports revealed that employees at Emergent’s Baltimore manufacturing facility “mixed up” ingredients for the J&J and AstraZeneca vaccines, contaminating up to 15 million doses of the J&J vaccine. It was also revealed that this was not an isolated incident and part of a history of manufacturing issues at Emergent’s plant. It was further reported that by December 2020, Emergent was forced to discard the equivalent of millions of AstraZeneca vaccine doses after they were spoiled by bacterial contamination of equipment at the same Baltimore facility. In response to these revelations, the Biden administration took the extraordinary action of placing J&J in charge of Emergent’s Baltimore plant and prohibiting it from producing the AstraZeneca vaccine. To date, not a single dose of any COVID-19 vaccine produced at the site has been released by the FDA for distribution. On this news, Emergent’s stock price fell by more than 15% over the next two trading days, damaging investors.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Emergent common stock during the Class Period to seek appointment as lead plaintiff in the Emergent class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Emergent class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Emergent class action lawsuit. An investor’s ability to share in any potential future recovery of the Emergent action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Emergent class action lawsuit or have questions concerning your rights regarding the Emergent class action lawsuit, please provide your information here or contact counsel, Jennifer Caringal of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at email@example.com. Lead plaintiff motions for the Emergent class action lawsuit must be filed with the court no later than June 18, 2021.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For eight consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.