Life sciences companies most-frequently sued in 2016

01/30/2017  - IMA Corp, Inc. News

Understand why Life Sciences companies accounted for nearly 23 percent of all securities litigation.

In 2016, D&O claims against Life Sciences companies accounted for nearly 23 percent of all federal class action securities litigation, representing 61 of the 270 cases filed. The uptick represents a 15-percent increase over the prior year and again leaves the Life Sciences sector as the foremost target of the plaintiff’s securities bar. The 270 filings also represents a 43-percent increase overall in comparison to 2015 and represents the highest litigation rate since passage of the Private Securities Litigation Reform Act in 1995.

Why is this happening? 

Life Sciences companies face a number of industry-specific exposures, including regulatory (i.e., FDA approval), marketing, product safety/efficacy, clinical trial timing, and manufacturing. As a result, there are numerous internal and external events that can impact a Life Sciences company and expose it to scrutiny by securities lawyers.

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