Biogen Inc. (BIIB: NSD) faces a class action lawsuit from shareholders who allege the company misled them regarding its business practices and financial outlook. The lawsuit comes after Biogen revised its earnings guidance downward in late 2023.
Allegations of Misconduct:
The lawsuit centers on claims that Biogen made false or misleading statements about its:
- Compliance controls: The lawsuit alleges Biogen overstated the effectiveness of its compliance procedures in foreign countries, potentially exposing the company to legal and financial risks.
- Alzheimer’s drug portfolio: Investors allege Biogen inflated the potential of its Alzheimer’s drugs, including Leqembi, and downplayed the challenges to market access.
- Financial guidance: The suit claims Biogen failed to properly disclose the negative impact of the Reata acquisition on its 2023 earnings.
These alleged misstatements, according to the lawsuit, caused investors to purchase Biogen stock at artificially inflated prices, resulting in financial losses when the truth was revealed.
Class Period and Lead Plaintiff Deadline:
The lawsuit applies to investors who purchased Biogen stock between February 3, 2022, and February 13, 2024. The deadline to be appointed as the lead plaintiff for the class is July 22, 2024.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
