Viropharma Inc (NASDAQ:VPHM) Investor Files Class Action Lawsuit Over Alleged Securities Laws Violations
May 21, 2012 (Shareholders Foundation) -- An investor in NASDAQ:VPHM shares filed a lawsuit in the U.S. District Court for the Eastern District of Pennsylvania against Viropharma Inc over alleged securities laws violations in connection with certain statements over its antibiotic drug Vancocin.
According to the complaint the plaintiff alleges on behalf of all persons or entities that purchased the securities of ViroPharma Incorporated (NASDAQ: VPHM) between December 14, 2011 and April 9, 2012, that Viropharma Inc and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing between December 14, 2011 and April 9, 2012, allegedly materially false and misleading statements regarding the Company's business operations, financial condition and prospects.
Specifically, the plaintiff claims that defendants allegedly misrepresented and omitted material facts concerning the market exclusivity it falsely assumed to possess for Vancocin. As a result of defendants' false and misleading statements, the Company's stock traded at artificially inflated prices during the Class Period.
The plaintiff says that on December 14, 2011, Viropharma Inc issued a press release which announced the "modernization of labeling" for Vancocin made effective through the FDA approval of a supplemental new drug application ("sNDA").
Shares of ViroPharma Incorporated (NASDAQ: VPHM) rose $4.21, closing at $27.80 per share on December 14, 2011.
Then, on April 10, 2012, ViroPharma Incorporated (Nasdaq: VPHM) announced the U.S. Food and Drug Administration (“FDA”) denied the citizen petition filed by ViroPharma on March 17, 2006 related to the FDA's proposed in vitro method for determining bioequivalence of abbreviated new drug applications (ANDAs) referencing Vancocin® (vancomycin hydrochloride, USP) Capsules.
Shares of Viropharma Inc (NASDAQ:VPHM) fell from $29.36 during April 9, 2012 to $21.24 during April 12, 2012 and closed on April 20, 2012 at $21.94 per share.