Nuvelo, Inc. Securities Litigation
Berger Montague served as co-lead counsel for the class in the Nuvelo Securities Litigation. The consolidated complaint alleged, among other things, that defendants misled investors by repeatedly trumpeting prior clinical success in the ongoing clinical trials of its lead drug candidate, alfimeprase, to treat blocked leg arteries and blocked catheters. The complaint also alleged that defendants failed to disclose that the U.S. Food and Drug Administration imposed an extraordinarily stringent standard for statistical significance on the clinical trial of alfimeprase for blocked catheters.
On December 11, 2006, defendants announced that Nuvelo’s clinical trials for alfimeprase for both indications (blocked leg arteries and blocked catheters) had failed. As a result of this announcement, Nuvelo’s stock price collapsed, plunging 80% from $19.55 to $4.05 per share in one day.
The case settled for $8.9 million in 2011.