Flamel Technologies SA Case 11/09/2007

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Company Name(s): 
Flamel Technologies
Case Name: 
Flamel Technologies SA Case 11/09/2007
Case Status: 
Lawsuit Filed
Case Status: 
Judgment Issued
Affected Securities
NASDAQ: FLML
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
11/09/2007
Class Period Begin: 
03/27/2007
Class Period End: 
08/22/2007
Summary: 

On December 05, 2007, a stipulation and Order was entered in order to extend the timeframe for the defendant Flannel technologies to answer or respond to the complaint in this action. Just as quickly, a motion to appoint lead plaintiff was filed on January 08, 2008. As a result, an Order granting the above mentioned motion to appoint lead plaintiff and the selection of lead counsel was entered on February 14, 2008. As the case proceeds, an amended complaint was filed on March 27, 2008. However, a motion to dismiss the amended complaint was filed on May 12, 2008.
 
The complaint charges Flamel and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Flamel is a biopharmaceutical company that develops polymer-based delivery technologies for medical applications. Its lead product is COREG CR for use in the treatment of moderate to severe congestive heart failure, left ventricular dysfunction following myocardial infarction and hypertension.
 
According to the complaint, throughout the Class Period, defendants made a series of false and misleading statements regarding the prospects for COREG CR. Specifically, the complaint alleges that defendants were in possession of undisclosed clinical trial data showing that Coreg CR was no more effective than Coreg IR, the twice-daily version of the drug.
 
On August 23, 2007, in an article entitled “Flamel Technologies Shares Dive on Disappointing Coreg Study Results,” the Associated Press reported that a study of its once-daily heart disease drug failed to show any benefit over the twice-daily version. On this news, Flamel’s ADR price dropped from $12.68 to $9.56 per share. This decrease in Flamel’s ADR price was a result of the artificial inflation caused by defendants’ misleading statements coming out of the ADR price.