Shareholder rights law firm Robbins LLP announces that a purchaser of Emergent BioSolutions Inc (NYSE: EBS) filed a class action complaint against the Company and its officers and directors for alleged violations of the Securities Exchange Act of 1934 between July 6, 2020 and March 31, 2021. Emergent is a specialty biopharmaceutical company that develops vaccines and antibody therapeutics for infectious diseases.
If you suffered a loss due to Emergent BioSolutions Inc.'s misconduct, click here.
Emergent BioSolutions Inc. (EBS) Misled Investors Regarding its Business Operations
According to the complaint, in response to the COVID-19 pandemic, Emergent signed deals with Johnson & Johnson and AstraZeneca worth a combined $875 million to provide contract development and manufacturing organization services to produce the companies' COVID-19 vaccine candidates. Emergent also received $628 million from the U.S. government as part of Operation Warp Speed. Following the deals, Emergent's President and CEO stated that the Company was "uniquely prepared to answer the call for [the] Covid-19 pandemic" because of its "proven manufacturing capabilities in place." Thereafter, company executives repeatedly assured investors of Emergent's ability and capacity to mass manufacture COVID-19 vaccines at its Baltimore manufacturing site. The announced deals sent the Company's stock price soaring – peaking at over $134 per share on August 13, 2020.
In reality, the Company was not equipped to manufacture the vaccine given the myriad issues at its Baltimore facility. On March 31, 2021, media reports revealed that employees at Emergent's Baltimore manufacturing facility "mixed up" ingredients for the Johnston & Johnson and AstraZeneca vaccines, contaminating up to 15 million doses of the Johnson & Johnson vaccine. It was further revealed that this was not an isolated incident and part of a history of manufacturing issues at the Company's plant, including problems with mold, poor disinfection of some plant equipment leading to growth of bacteria, the repeated approval or raw materials that had not been fully tested, and poor employee training.
In response to these revelations, the Biden administration placed Johnson & Johnson in charge of Emergent's Baltimore plant and prohibited it from producing the AstraZeneca vaccine. To date, not a single dose of COVID-19 vaccine produced at this site has been released by the FDA for distribution.
On this news, Emergent's stock has declined significantly, trading at $92.91 at close on March 31, 2021, but trading at just $61.85 today.
If you purchased shares of Emergent BioSolutions Inc. (EBS) between July 6, 2020 and March 31, 2021, you have until June 18, 2021, to ask the court to appoint you lead plaintiff for the class. If you would like more information regarding your rights, please contact Lauren Levi at (800) 350-6003 or llevi@robbinsllp.com, or via our Shareholder Information Form.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
Robbins LLP is a nationally recognized leader in shareholder rights law. To be notified if a class action against Emergent BioSolutions Inc. settles or to receive free alerts about companies engaged in wrongdoing, sign up for Stock Watch today.
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Contacts:
Robbins LLP
llevi@robbinsllp.com
(800) 350-6003
www.robbinsllp.com
