Scott+Scott, Attorneys at Law, LLP Files Securities Class Action Lawsuit Against CR Intrinsic Investors, LLC, Among Other Defen
13 April 2013 - 2:00AM
Scott+Scott, Attorneys at Law, LLP ("Scott+Scott") has filed a
class action complaint in the United States District Court for the
Southern District of New York on behalf of all persons who
purchased or otherwise acquired the common stock of Wyeth (formerly
NYSE:WYE) between July 21, 2008 and July 29, 2008, inclusive (the
"Class Period"). The action seeks remedies under the Securities
Exchange Act of 1934 (the "Exchange Act").
If you purchased Wyeth common stock during the Class Period and
wish to serve as a lead plaintiff in the action, you must move the
Court no later than June 11, 2013. Any member of the investor class
may move the Court to serve as lead plaintiff through counsel of
its choice or may choose to do nothing and remain an absent class
member. If you wish to discuss this action or have questions
concerning this notice or your rights, please contact Scott+Scott
(scottlaw@scott-scott.com, (800) 404-7770, (860) 537-5537) or visit
the Scott+Scott website for more information. There is no cost or
charge to you for contacting Scott+Scott.
The securities class action complaint alleges that CR Intrinsic
Investors, LLC, together with its affiliates, including but not
limited to SAC Capital Associates, LLC and SAC Capital Advisors,
L.P. (collectively, "Defendants"), violated the securities laws by
trading Wyeth shares based on material, non-public information
ahead of a July 29, 2008 announcement disclosing disappointing
clinical trial results for the drug bapineuzumab (AAB-001)
("bapi"). Bapi was an Alzheimer's disease treatment that was
being jointly developed by Wyeth and Elan Corporation, plc.
On June 17, 2008, Wyeth released top-line summary results from
the Phase 2 clinical trial of bapi. The market's reaction was
favorable, and Wyeth's common stock rose 10.7% after the
announcement. Detailed trial results were to be released at a
conference on July 29, 2008.
Shortly before the July 29, 2008 conference, Defendants obtained
material, non-public information, pursuant to which they learned
that the final results from the bapi drug trials were a
disappointment. Defendants began aggressively selling their
positions in Wyeth, and over the seven trading days leading up to
the July 29, 2008 announcement, Defendants completely liquidated
their positions in Wyeth, worth over $335 million. In
addition, Defendants opened large short positions in Wyeth.
On July 29, 2008, after the close of the U.S. securities
markets, the detailed Phase II clinical results of bapi were
presented. The results of the Phase II clinical trial were
strongly and unexpectedly negative. On July 30, 2008, the next
trading day, Wyeth's share price fell 41.8% from its prior close on
July 29th.
In total, by trading on material, non-public information related
to Wyeth during the week before the July 29th presentation,
Defendants avoided approximately $40.4 million in losses on their
long positions, and secured a $16 million profit from the short
positions they opened during the same week. Conversely, it is
alleged in the complaint that Plaintiff and other members of the
Class suffered damages under the federal securities laws when they
purchased Wyeth common stock during the Class Period.
Scott+Scott has significant experience prosecuting major
securities, antitrust, and employee retirement plan actions
throughout the United States. The firm represents pension
funds, foundations, individuals, and other entities worldwide.
If you have any questions regarding this matter, please
contact:
Michael Burnett Scott+Scott, Attorneys at Law, LLP (800)
404-7770 (860) 537-5537 scottlaw@scott-scott.com, or
mburnett@scott-scott.com
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