Emergent BioSolutions (NYSE: EBS) Securities Fraud Class Action:
Throughout the class period, Defendants touted Emergent’s deals with J&J and AstraZeneca to produce their vaccine candidates and separate production contract with the U.S. government. Defendants also emphasized its “proven manufacturing capabilities in place” at its Baltimore, Maryland facility.
In truth, the company failed to disclose a multitude of issues at its Baltimore facility that would detrimentally affect its ability to manufacture the vaccines.
On Mar. 31, 2021, media reports revealed the company mixed up ingredients for J&J’s and AstraZeneca’s vaccines, contaminating up to 15 million J&J vaccine doses.
This news caused Emergent shares to decline. Notably, shortly before this disclosure, Emergent’s CEO sold $10 million of his shares.
On Apr. 6, 2021, the New York Times reported that “[p]reviously undisclosed internal documents and interviews with current and former federal officials and former company employees depict a factory operation that was ill-equipped to take on such a mammoth manufacturing task.” The NYT reported that audits and investigations – including ones conducted by J&J, AstraZeneca, two federal agencies and Emergent – found that Emergent had not followed basic industry standards at its Baltimore facility. AstraZeneca’s audit highlighted risks of viral cross-contamination. The NYT further reported that beginning in Oct. 2020, Emergent discarded five lots of the AstraZeneca vaccine and one lot of the J&J vaccine because of contamination or spoliation.
“We’re focused on investors’ losses and proving Emergent lied about its vaccine production capabilities,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are an Emergent investor and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Emergent should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email EBS@hbsslaw.com.
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Reed Kathrein, 844-916-0895