Catalyst Pharmaceutical Partners Inc (NASDAQ: CPRX) Investor Securities Class Action Lawsuit 10/25/2013

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Company Name(s): 
Catalyst Pharmaceutical
Case Name: 
Catalyst Pharmaceutical Shareholder Class Action Lawsuit 10/25/2013
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
NASDAQ: CPRX
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
10/25/2013
Class Period Begin: 
08/27/2013
Class Period End: 
10/18/2013
Court of Filing: 
U.S. District Court for the Southern District of Florida
Deadline To File for Lead: 
12/24/2013
Date Settled: 
12/03/2014
Settlement Amount: 
$3,500,000
Deadline to Participate in Settlement: 
02/02/2015
Summary: 

August 19, 2015 - The court ordered the authorization of the distribution of the net settlement fund.

March 16, 2015 - The court held a final settlement hearing and approved the settlement, the plan of allocation, the motion for attorneys' fees and expenses and dismissed the action with prejudice.

December 3, 2014 - The court preliminarily approved the settlement.

November 21, 2014 - Parties filed a stipulation of settlement.

October 15, 2014 - The court denied the plaintiffs' motion to correct second amended complaint.

September 24, 2014 - The lead plaintiffs filed a motion to correct second amended complaint.

April 11, 2014 - The court denied the defendants' motion to strike second amended complaint.

April 8, 2014 - Defendants filed motion to strike second amended complaint.

April 4, 2014 - The lead plaintiffs filed a second amended complaint.

March 26, 2014 - The court granted in part and denied in part the defendants' motion to dismiss amended complaint and granted plaintiffs leave to file a second amended complaint.

February 7, 2014 - Defendants filed a motion to dismiss amended complaint.

January 23, 2014 - The lead plaintiffs filed an amended complaint.

January 3, 2014 - The lead plaintiffs and lead counsel were appointed and the defendants' motion to dismiss was granted with leave to file an amended complaint.

December 24, 2013 - A lead plaintiff motion was filed.

December 10, 2013 - The defendants filed a motion to dismiss.

November 15, 2013 - Another investor filed a complaint.

October 25, 2013 - An investor in shares of Catalyst Pharmaceutical Partners Inc (NASDAQ: CPRX), filed a lawsuit in the U.S. District Court for the Southern District of Florida against Catalyst Pharmaceutical Partners Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between October 31, 2012 and October 18, 2013.

According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired Catalyst Pharmaceutical Partners Inc (NASDAQ: CPRX) between October 31, 2012 and October 18, 2013, that Catalyst Pharmaceutical Partners Inc and certain of its officers and directors violated the Securities Exchange Act of 1934.

More specifically, the plaintiff alleges that Catalyst Pharmaceutical Partners Inc failed to disclose between October 31, 2012 and October 18, 2013, that one of its competitors has already been manufacturing a drug biologically equivalent to Firedapse–a drug Catalyst Pharmaceutical Partners Inc has claimed to be developing and marketing–and providing it to patients to treat Lambert-Eaton Myasthenic Syndrome free of charge, through a compassionate use program.

On October 15, 2013, Catalyst Pharmaceutical Partners Inc announced that, at a recently held meeting, the independent Data Monitoring Committee (DMC) overseeing Catalyst Pharmaceutical Partners Inc's ongoing pivotal Phase III clinical trial in the United States and Europe evaluating Firdapse™ for the treatment of Lambert-Eaton Myasthenic Syndrome (“LEMS”) recommended that Catalyst Pharmaceutical Partners Inc continue the trial as planned based on the committee's review of safety and clinical data from the trial.

However, then on October 18, 2013, a report was published about Catalyst Pharmaceutical Partners Inc and its drug Firdapse. The article stated that upon a closer look into Catalyst Pharmaceutical Inc and one discovers “allegations of profiteering off a small group of vulnerable, sick patients and a ton of clinical and regulatory risk”. The article said that “In exchange for spending the time and money to develop drugs for diseases that might ordinarily be ignored, these companies get to charge sky-high prices” and that ”insurance companies generally pick up the tab without complaints because there are so few patients who need these expensive drugs.” However, the article stated that Catalyst Pharmaceutical Partners Inc is developing Firdapse for LEMS and will likely charge the few thousand LEMS patients in the U.S. more than $60,000 per year even though the same drug is already available for the past 20 years to U.S LEMS patients for free by a small, private, family-owned pharmaceutical company in New Jersey called Jacobus Pharmaceuticals.

Shares of Catalyst Pharmaceutical Partners Inc (NASDAQ: CPRX) declined from over $3.50 in early October 2013 to $1.50 per share on October 21, 2013.

On October 25, 2013, Catalyst Pharmaceutical Partners Inc (NASDAQ: CPRX) shares closed at $1.87 per share.