Hemispherx Biopharma Inc. Securities Litigation
Berger Montague served as co-lead counsel in this consolidated class action stemming from the collapse of Hemispherx stock after it was revealed in December 2009 that the U.S. Food and Drug Administration had rejected Ampligen despite repeated assurances by the company that approval was right around the corner. By rejecting Ampligen, the FDA said that two primary clinical studies Hemispherx submitted with the application did not provide credible evidence the drug helped treat chronic fatigue syndrome. The FDA requested at least one additional study showing the drug helped treat the syndrome. The FDA also noted the need to resolve outstanding inspection issues at the facilities which produce Ampligen. Philadelphia-based Hemispherx’s stock dropped 40 percent the next day, the second major fall for the stock in the span of a month.
The case was settled and the court granted final approval on February 14, 2011.