Karim Khoja, on behalf of himself and all others similarly situated v. Orexigen Therapeutics Inc., Joseph P. Hagan, Michael A. Narachi, Preston Klassen
Published: Jun. 11, 2021 | Result Date: Apr. 22, 2021 |Case number: 3:15 cv-00540 JLS Settlement – $4,800,000
Judge
Court
USDC Southern District of California
Attorneys
Plaintiff
Alexander L. Burns
(Kahn, Swick & Foti LLC)
Ramzi Abadou
(Kahn, Swick & Foti LLP)
Stephen R. Basser
(Barrack, Rodos & Bacine)
Jennifer Pafiti
(Pomerantz LLP)
Defendant
William P. Donovan Jr.
(McDermott, Will & Emery LLP)
John C. Dwyer
(Cooley LLP)
Mary Kathryn Kelley
(Cooley LLP)
Facts
Karim Khoja was the lead plaintiff in a class action complaint on behalf of all persons who purchased or otherwise acquired Orexigen Therapeutics, Inc. publicly traded securities between March 3, 2015 and May 12, 2015. Plaintiff contended that Orexigen made misleading statements concerning its weight loss drug, "Contrave."
Contentions
PLAINTIFFS' CONTENTIONS: Plaintiffs contended that defendant made misleading statements concerning Contrave. Plaintiffs contended that the news that Contrave may demonstrate cardioprotective benefits caused Orexigen's stock to close "31 percent higher than it did the day before." However, plaintiff contended in a Forbes.com article, a senior FDA official condemned Orexigen's disclosure, causing the stock price to plummet.
DEFENDANTS' CONTENTIONS: Defendants denied all of the contentions and moved for dismissal.
Settlement Discussions
The parties agreed to accept the mediator's proposal to resolve the matter.
Result
The parties agreed to settle for $4,800,000.
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