Investor accuses biopharmaceutical company, officers of fraud

By Michael Abella | Aug 11, 2016

TRENTON, N.J. (Legal Newsline) — A Massachusetts investor is suing a biopharmaceutical company and its officers, alleging false and misleading statements regarding the company's worth.

William T. Hoey of Worcester County filed a class action lawsuit, individually and on behalf of all others similarly situated, July 15 in U.S. District Court District of New Jersey against Insmed Incorporated, William H. Lewis and Andrew T. Drechsler, alleging violation of the Securities and Exchange Act.

According to the complaint, Hoey suffered significant financial losses and damages after  acquiring Insmed securities at artificially inflated prices during the class period. The market price of Insmed securities declined sharply upon public disclosure of certain facts, the suit says. 

The plaintiff alleges the defendants deceived the investing public, artificially inflated and maintained the market price of Insmed securities and failed to disclose material adverse information and misrepresented the truth about Insmed’s finances and business prospects.

Hoey seeks a trial by jury, judgment this case can be maintained as a class action, award for damages, pre- and post­-judgment interest, attorney fees, expert fees, legal costs and all relief the court deems just and proper. He is represented by attorneys Bruce D. Greenberg of Lite DePalma Greenberg LLC in Newark, New Jersey, by Jeremy A. Lieberman, J. Alexander Hood II and Marc Gorrie of Pomerantz LLP in New York, and by Patrick V. Dahlstrom of Pomerantz LLP in Chicago.

U.S. District Court District of New Jersey Case number 3:16-cv-04323

More News

The Record Network