Investigations
Biogen Inc.
Overview
Overview
- Deadline:
- Jul 22, 2024
| Company Name: | Company Name: Biogen Inc. |
| Stock Symbol: | Stock Symbol: BIIB |
BIOGEN INC. (Nasdaq: BIIB): Biogen Has Been Sued For Violations of the Federal Securities Laws in connection with alleged false and misleading statements made to investors and subsequent significant price declines in the stock.
If you incurred losses in Biogen, you are encouraged to fill out the form below to get more information and speak with an attorney about your rights.
Why is BIIB being Sued?
The Complaint alleges that Biogen and certain of its senior officers made materially false and misleading statements to investors related to: (a) the company’s efforts to enhance transparency, corporate governance, and compliance controls and procedures, as well as the effectiveness of its controls and procedures; (b) the purported success of the launch of its Alzheimer’s disease treatment named Leqembi, and Biogen’s ability to dose 10,000 patients with the drug by March 2024; and (c) the impact that the company’s acquisition of Reata Pharmaceuticals, Inc. would have on its FY 2023 non-GAAP diluted EPS.
The Complaint alleges that, in reality: (a) Biogen maintained inadequate compliance controls and procedures and was engaged in unlawful conduct in several foreign countries; (b) the launch of Leqembi was a failure; and (c) Biogen’s acquisition of Reata was significantly dilutive to the company’s non-GAAP diluted EPS.
The Stock Declines as the Truth is Revealed
Investors learned the alleged truth through a series of disclosures beginning on November 8, 2023, when the company negatively revised non-GAAP diluted EPS guidance for fiscal year 2023 to a range of $14.50 to $15.00 per share, well below its previously issued guidance of $15.00 to $16.00 per share due to approximately $0.75 of dilution from the acquisition of Reata. On this news, the price of Biogen shares declined by $13.92 per share, or 5.67%, to close at $231.69 per share on November 8, 2023.
Next, on January 8, 2024, Biogen CEO Christopher Viehbacher revealed challenges with the launch of Leqembi and walked back the company’s prior expectations that it would have 10,000 patients on Leqembi by March 2024. On this news, the price of Biogen shares declined by $10.77 per share, or 4.17%, over three consecutive trading days to close at $247.21 per share on January 11, 2024.
Then, on February 6, 2024, news reports surfaced that Biogen’s Leqembi development partner was facing challenges with the launch of Leqembi and that only 2,000 patients had received the drug. On this news, the price of Biogen shares declined by $5.01 per share, or 2.04%, to close at $240.54 per share on February 7, 2024.
On February 13, 2024, Biogen announced that its fourth quarter and fiscal year 2023 results had significantly missed consensus estimates and confirmed that Biogen had “approximately 2,000 patients on [Leqembi] at that moment” and that “there are about 3,800 patients as of last week on the registry” waiting for the drug – far less than the 10,000-patients set by Biogen for March 2024. On this news, the price of Biogen shares declined by $18.09 per share, or 7.39%, to close at $226.65 per share on February 13, 2024.
Finally, on February 14, 2024, Biogen revealed that it received a subpoena from the Department of Justice “seeking information relating to [Biogen’s] business operations in several foreign countries” and that it “is also providing information relating to [its] business operations in several foreign countries to the SEC.” On this news, Biogen’s stock price fell $5.91 per share, or 2.61%, to close at $220.74 per share on February 14, 2024.
The lawsuit seeks to recover compensatory monetary damages for investors sustained because of Biogen’s alleged wrongdoing.
I Suffered Losses, What Should I Do?
If you suffered losses from your investment in Biogen, you should fill out the form below to speak with an attorney about your rights.
All representation is on a contingency fee basis. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses.
You can also contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
Why Bleichmar Fonti & Auld LLP?
Bleichmar Fonti & Auld LLP is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors (pending court approval), as well as $420 million from Teva Pharmaceutical Ind. Ltd.
If you incurred losses in Biogen, you are encouraged to fill out the form below to get more information and speak with an attorney about your rights.
Why is BIIB being Sued?
The Complaint alleges that Biogen and certain of its senior officers made materially false and misleading statements to investors related to: (a) the company’s efforts to enhance transparency, corporate governance, and compliance controls and procedures, as well as the effectiveness of its controls and procedures; (b) the purported success of the launch of its Alzheimer’s disease treatment named Leqembi, and Biogen’s ability to dose 10,000 patients with the drug by March 2024; and (c) the impact that the company’s acquisition of Reata Pharmaceuticals, Inc. would have on its FY 2023 non-GAAP diluted EPS.
The Complaint alleges that, in reality: (a) Biogen maintained inadequate compliance controls and procedures and was engaged in unlawful conduct in several foreign countries; (b) the launch of Leqembi was a failure; and (c) Biogen’s acquisition of Reata was significantly dilutive to the company’s non-GAAP diluted EPS.
The Stock Declines as the Truth is Revealed
Investors learned the alleged truth through a series of disclosures beginning on November 8, 2023, when the company negatively revised non-GAAP diluted EPS guidance for fiscal year 2023 to a range of $14.50 to $15.00 per share, well below its previously issued guidance of $15.00 to $16.00 per share due to approximately $0.75 of dilution from the acquisition of Reata. On this news, the price of Biogen shares declined by $13.92 per share, or 5.67%, to close at $231.69 per share on November 8, 2023.
Next, on January 8, 2024, Biogen CEO Christopher Viehbacher revealed challenges with the launch of Leqembi and walked back the company’s prior expectations that it would have 10,000 patients on Leqembi by March 2024. On this news, the price of Biogen shares declined by $10.77 per share, or 4.17%, over three consecutive trading days to close at $247.21 per share on January 11, 2024.
Then, on February 6, 2024, news reports surfaced that Biogen’s Leqembi development partner was facing challenges with the launch of Leqembi and that only 2,000 patients had received the drug. On this news, the price of Biogen shares declined by $5.01 per share, or 2.04%, to close at $240.54 per share on February 7, 2024.
On February 13, 2024, Biogen announced that its fourth quarter and fiscal year 2023 results had significantly missed consensus estimates and confirmed that Biogen had “approximately 2,000 patients on [Leqembi] at that moment” and that “there are about 3,800 patients as of last week on the registry” waiting for the drug – far less than the 10,000-patients set by Biogen for March 2024. On this news, the price of Biogen shares declined by $18.09 per share, or 7.39%, to close at $226.65 per share on February 13, 2024.
Finally, on February 14, 2024, Biogen revealed that it received a subpoena from the Department of Justice “seeking information relating to [Biogen’s] business operations in several foreign countries” and that it “is also providing information relating to [its] business operations in several foreign countries to the SEC.” On this news, Biogen’s stock price fell $5.91 per share, or 2.61%, to close at $220.74 per share on February 14, 2024.
The lawsuit seeks to recover compensatory monetary damages for investors sustained because of Biogen’s alleged wrongdoing.
I Suffered Losses, What Should I Do?
If you suffered losses from your investment in Biogen, you should fill out the form below to speak with an attorney about your rights.
All representation is on a contingency fee basis. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses.
You can also contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
Why Bleichmar Fonti & Auld LLP?
Bleichmar Fonti & Auld LLP is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors (pending court approval), as well as $420 million from Teva Pharmaceutical Ind. Ltd.