The Importance of Data
The fact pattern sounds like a law school examination. Publicly held biotech company is using clinical trials to test an anticancer drug. Biotech entity hires clinical trial company to perform part of the clinical trial. Results are returned and appear quite promising. Biotech announces results to investors. Ten days later, biotech company finds errors in the data from clinical trial company. Biotech publicly announces that there are errors in previously released data and investors should not rely on the data. Stock price plunges by 78%. Biotech company then sues clinical trial company for errors in data. That suit is followed by securities fraud class action suits by law firms representing shareholders. Resolve all issues.
The biotech company is Peregrine. The story has been covered by LAW360 (here and here) and others. The suit against clinical data company is here.
