U.S. court allows class action suit against Amgen
November 9th, 2011 // 1:42 pm @ jmpickett
A U.S. appeals panel upheld the certification of a securities class action accusing biotech company Amgen of failing to disclose safety information about two products used to treat anemia.
Amgen allegedly exaggerated the safety of its products for Food and Drug Administration-approved uses, according to court documents. The plaintiff, a state pension fund, also alleged Amgen misrepresented its marketing practices, claiming it promoted its products solely for on-label uses when it in fact promoted significant off-label usage.
The 9th U.S. Circuit Court of Appeals ruled on Tuesday that a lower court did not abuse its discretion in certifying the class.
In order to win class certification, the plaintiff must plausibly allege — but need not prove — that Amgen’s misrepresentations are material, the three-judge appeals panel ruled.
An Amgen representative could not immediately comment on Tuesday.
Shares of Amgen were down just over one percent at $57.84 in afternoon trading.
The case in the 9th Circuit is Connecticut Retirement Plans and Trust Funds v. Amgen Inc. et al, 09-56965.
