Given the numbers from 2022 and recent years’ filings, and accounting for residual impact of the COVID-19 pandemic, there is no indication that the filings of securities claims against life sciences companies are going to slow down any time soon, and plaintiffs continue to have mixed results in surviving a motion to dismiss. The decisions in 2022 resulted in a variety of outcomes, with 21 opinions decided in favor of defendants, 10 opinions denying motions to dismiss and 11 opinions in which only partial dismissal was achieved. These numbers illustrate how life sciences companies remain attractive targets for class action securities fraud claims. Therefore, companies should continue to stay abreast of recent developments and implement best practices to reduce their risk of being sued.
Source: Developments in Securities Fraud Class Actions Against U.S. Life Sciences Companies