Securities fraud lawsuit filed against VaxGen
BY Advocate.com Editors
March 19 2003 12:00 AM ET
Law firm Milberg Weiss filed a multimillion-dollar securities fraud class-action lawsuit Monday against biotech firm VaxGen, the maker of the AIDSVAX HIV vaccine, claiming that the company allowed insiders to sell stock before announcing disappointing clinical trial results of the vaccine. The suit was filed in the U.S. district court for the Northern District of California on behalf of investors who purchased VaxGen stock between August 6, 2002, and February 26, 2003. The lawsuit claims the company cheated thousands of small investors by allowing favored investors to sell company stock before the company released information that showed the vaccine reduced overall new HIV infections by only 3.8%. Specifically, the lawsuit alleges that VaxGen officers knew the vaccine would not be effective and that they allowed institutional stock sales prior to the announcement. Following the release of the clinical trial data, VaxGen stock fell from $23.25 per share to just $3 per share.
VaxGen officials call the lawsuit "without merit." "VaxGen has complied with all securities laws and, if need be, will defend itself vigorously," said a company spokesperson.
- Holiday Guide: Shop Here, Not There
- New Celeb Couple: Dustin Lance Black and Tom Daley
- WATCH: Jared Leto on Avoiding Trans Character 'Cliché' for 'Dallas Buyers Club'
- Bringing Diversity to the Digital Realm
- Op-ed: Straight Teen Girls Can Change the World
- Making LGBT Spirits Bright This Holiday Season
- Travel Out Traveler Awards: Best Cruise Line? 29 min 4 sec ago
- Society Making LGBT Spirits Bright This Holiday Season 29 min 57 sec ago
- Women PHOTOS: Oxford University's Women's Rugby Club Bares All for Charity 45 min 45 sec ago
- Entertainment News Bill Hader Wanted Stefon's Goodbye to Be Emotional 4:50 PM
- Women 13 Reasons to Let AHS: Coven Cast A Spell on You -- in GIFs 4:36 PM
- Sports You Can Play and NFL Team Up With LGBT Youth 3:37 PM
- Entertainment News Gay Men's Chorus of Los Angeles Performs Parody of Joe Boxer Christmas Ad 3:36 PM