Stockholder sues pharmaceutical company over rejected drug Macrilen

By Legal News Line | Jan 13, 2015

TRENTON, N.J. (Legal Newsline) - A man who purchased stock from a New Jersey biopharmaceutical company filed a class action lawsuit on Jan. 6 over allegations that the company violated the Security Exchange Act of 1934.

Jamshid Khodavandi sued Aeterna Zentaris, Inc. (AEZS), a former company president, vice presidents and other high-level business officers. The suit follows the FDA's rejection of the drug Macrilen.

According to the complaint, Khodavandi and other class members purchased stock from AEZS between April 6, 2012 and Nov. 6, 2014.

Khodavandi alleged the defendants knew public statements issued concerning the efficacy of the drug Macrilen as a diagnostic test for growth hormone deficiency and the potential for life-threatening side effects were materially false and misleading.

Khodavandi also alleged the misrepresentations made by AEZS regarding Macrilen allowed the defendants to conduct numerous rounds of financing with potential investors. Khodavandi alleged AEZS knew people would rely on its misrepresentations and omissions.

The FDA rejected the drug in November.

Khodavandi seeks compensatory damages, along with costs.

The suit also named David A. Dodd, Juergen Engel, Dennis Turpin, Jude Dinges, Richard Sachse and Paul Blake as defendants.

Khodavandi and the class are represented by Laurence Rosen, of The Rosen Law Firm, P.C. of South Orange, N.J.

United States District Court for the District of New Jersey case number: 3:15-cv-00091.

More News

The Record Network