Dendreon settling Provenge securities suit
Dendreon Corp. (NASDAQ:DNDN) agreed to pay $40 million to settle a securities class action lawsuit alleging the company made "materially false and misleading statements" on its finances and business operations. The statements include those on the launch and forecasts for prostate cancer therapy Provenge sipuleucel-T, Dendreon's only marketed product. The biotech's stock has taken a hit on lower-than-expected uptake of the drug, which Dendreon launched in 2010. Last year, Dendreon restructured for the second time after pulling its 2011 revenue guidance for Provenge.
The suit was filed in August 2011 in the U.S. District Court for the Western District of Washington on behalf of investors who acquired Dendreon stock between April 29, 2010, and Aug. 3, 2011. The suit named the company along with three current and former executives. The settlement is subject to approval by the district court, which Dendreon said will take several months. The company's insurers will pay $38 million of the settlement. ...