May 11, 2015—A class action lawsuit for which Nathan Associates analyzed potential damages to shareholders in the drugmaker Impax Laboratories Inc. is headed for final settlement next month.
Attorneys for the shareholder plaintiffs filed a motion last week seeking final approval of the $8 million settlement at a hearing scheduled for June 11 before U.S. District Judge Edward M. Chen of San Francisco. Chen had granted preliminary approval of the settlement in January.
The plaintiffs, who include pension plans, sued Impax in March and April of 2013. The complaint alleged that Impax misled investors about the company’s progress in remedying manufacturing deficiencies at its main plant in Hayward, California.
The U.S. Food and Drug Administration (FDA) had initially warned Impax in May 2011 about manufacturing deficiencies. Impax shares plummeted in March 2013 after the company disclosed that a recent FDA inspection report cited new and continued problems at Hayward, where Impax is based.
The case is 13-cv-01037-EMC, filed in U.S. District Court for the Northern District of California, San Francisco Division. Click here to see the lead plaintiffs’ notice of motion and motion for final approval of the settlement.
Nathan Associates helps clients navigate the economic and financial complexities of securities class action litigation and individual disputes. The firm advises litigators in securities fraud cases brought under Sections 11, 12, and 15 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.