Dendreon Corporation Agrees to Settlement In Shareholder Class Action
November 2010 - To all persons and entities who purchased the common stock of Dendreon Corporation between March 29, 2007 and May 8, 2007, both dates inclusive, please note that if you are a member of the class, you may be entitled to share in the proceeds of the settlement.
On August 21, 2010, the parties held a day-long mediation. Following the mediation, the parties engaged in extensive, arm’s-length negotiations. On or about September 16, 2010, the parties agreed to settle the Action. The proposed Settlement with Defendants creates a fund in the amount of $16,500,000 in cash, which will include interest that accrues prior to distribution (the ―Settlement Fund‖). Your recovery from this fund will depend on a number of variables, including the number of shares of Dendreon common stock you purchased during the Class Period and the timing of your purchases and any sales. A settlement hearing will be held on December 17, 2010, in Seattle, Washington. The purpose of the Settlement Hearing will be to determine: (1) whether the Settlement consisting of $16,500,000 in cash should be approved as fair, reasonable, and adequate to the Class and the proposed Judgment entered; and (2) whether the applications for attorneys’ fees and expenses should be approved. The Court may adjourn or continue the Settlement Hearing without further notice to the Class.
May 2007 - The federal lawsuit against the Seattle biopharmaceutical company, Dendreon Corporation, was filed alleging that Dendreon and its chief executive defrauded investors as to the company’s value.
The action, filed Thursday in U.S. District Court, alleges that Dendreon and and its chief executive concealed negative information about nascent anti-cancer drug Provenge and made misleading statements that led the plaintiffs to buy shares at artificially inflated prices.
It also says that and Dendreon’s chief executive personally benefited from the scheme by exercising stock options when the share prices were at that artificially inflated high.
The company’s stock hit a 52-week high of $25.25 on April 10 after a committee of U.S. government advisers recommended approval of Provenge. Shares plunged more than 60 percent earlier this month when the Food and Drug Administration overrode that recommendation and requested more information.
Dendreon has been at work for a number of years on Provenge, a treatment for prostate cancer that many cancer advocates believe will be preferable to the alternative treatments: chemotherapy and radiation.
The 23-page complaint, filed Thursday, tracks statements made by the chief executive about the success of Provenge in clinical trials.
The complaint says the chief executive and Dendreon misled the investing public by failing to distinguish in public statements between several different studies of Provenge’s safety and effectiveness. Such failures, it says, drove up share prices in anticipation of the FDA’s approval of Provenge.