In re Akorn, Inc. Securities Litigation
|Court:||United States District Court for the Northern District of Illinois|
|Judge:||Hon. Matthew F. Kennelly|
|Class Period:||03/01/2017 - 02/26/2018|
|Case Contacts:||John Rizio-Hamilton, Abe Alexander|
This is a securities fraud class action filed on behalf of a class of all persons and entities who purchased or otherwise acquired Akorn, Inc. (“Akorn” or the “Company”) securities between March 1, 2017 and February 26, 2018, inclusive (the “Class Period”), against Akorn and certain of its senior executives (together, “Defendants”).
Akorn is a Louisiana-based pharmaceutical company that develops, manufactures, and markets specialized generic and branded pharmaceuticals, over-the-counter drug products, and animal health products in the United States and internationally. This action arises from allegations of pervasive fraud at the highest levels of Akorn involving the Company’s systemic violations of U.S. Food and Drug Administration (“FDA”) data integrity regulations and the efforts of its most senior executives to cover up those violations. The action alleges, among other things, that key Akorn executives directed Company employees to submit fabricated clinical drug data to the FDA in order to secure approval of its drugs. Moreover, outside consultants hired by Akorn during the Class Period pointedly warned Akorn that its systemic data integrity violations were so serious that the Company could face criminal liability. Yet, Akorn ignored its consultants’ advice, affirmatively instructed employees to refrain from fixing the Company’s data integrity failures. All the while, Akorn and Defendants made numerous materially false and misleading public statements assuring investors that Akorn complied with FDA regulations and touting the Company’s pipeline of new drug applications it had submitted to the FDA. When the truth about Akorn’s systemic data integrity failures was finally revealed to the market, the Company’s stock price plummeted, collapsing approximately 60% in just two trading days.
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