This is a securities fraud class action lawsuit against Vertex Pharmaceuticals Inc. and certain of its officers and directors.
Vertex is a pharmaceutical company engaged in the discovery, development and commercialization of small molecule drugs for the treatment of serious diseases.
The securities class action complaint alleges that Vertex made false and misleading statements about the development of Vertex's HCV protease inhibitor, telaprevir or VX-950, for the treatment of hepatitis C. Specifically, Vertex made favorable statements regarding VX-950 but failed to disclose unfavorable data from a trial of the drug called PROVE 2.
When the truth was disclosed on November 2, 2007, Vertex's stock price dropped from $31.64 to $24.08 in two trading days. According to the class action complaint, Vertex's statements regarding VX-950 and the PROVE 2 trial were materially false and misleading because they failed to disclose unfavorable data regarding VX-950 from the PROVE 2 trial compared to PROVE 1. Specifically, PROVE 1 showed that patients taking VX-950 experienced 16% greater total viral reduction after twelve weeks compared to the control group. The results of PROVE 2, which defendants did not disclose during the Class Period, showed an advantage over the control group of only six percent.
Name (Stock Symbol)
Vertex Pharmaceuticals Inc. (VRTX)
Vertex Pharmaceuticals Inc. is a pharmaceutical company.
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