SAN FRANCISCO (Legal Newsline) – Two plaintiffs and law firms are battling it out in court to be named the lead in a class action lawsuit filed against a pharmaceutical company.
In Brian Clevlen's class action against Anthera Pharmaceuticals and a group of individual defendants, two plaintiffs - the Roberts Investor Group and Urešomir Čorak - have filed motions with the U.S. District Court Northern District of California to be named, along with their representation, as the lead plaintiffs and counsel in the lawsuit.
The lawsuit has its origins in a complaint filed by Clevlen arguing hat the defendants issued false statements regarding the company's business and operations. Clevlen alleged that the defendants caused him and others monetary damages by artificially inflating the price of the company's common stock, by refusing to disclose to stockholders that patients were not responding to its CHABLIS-SC1 treatment for systemic lupus erythematosus.
In the memorandum written on behalf of the Roberts Group, the organization's representation argues that it is the most adequate plaintiff based on its loss of $168,553.82, which was suffered as a result of the defendants’ alleged wrongful conduct.
The memorandum goes on to assert that these losses indicate that the Roberts Investment Group has the largest financial stake in the lawsuit. In addition, it claims that the investment group's representation, Lifshitz and Miller LLP, should be made legal counsel because "because the firm possesses extensive experience in the prosecution of securities class actions and will adequately represent the interests of all class members."
Meanwhile, Čorak asserts that as the plaintiff who lost approximately $869,253.28 as a result of the alleged fraud, he has suffered larger financial damages and is in the best position to be made lead plaintiff and his representation Levi and Korsinsky should be made lead counsel.
Both plaintiffs also argue that they both qualify for the role of lead plaintiff according to the requirements set by the Federal Rules of Civil Procedure which establishes that someone is qualified to be lead plaintiff if they meet the following criteria: has either filed the complaint or made a motion in response to a notice and in the determination of the court, has the largest financial interest in the relief sought by the class and otherwise satisfies the requirements of Rule 23 of the Federal Rules of Civil Procedure.
In addition, both plaintiffs argue that they should qualify because they meet the requirements of Rule 23 of the Federal Rules procedure, which states "(a) of the Federal Rules of Civil Procedure(1) the class is so numerous that joinder of all members is impracticable; (2) there are questions of law or fact common to the class; (3) the claims or defenses of the representative parties are typical of the claims or defenses of the class; and (4) the representative parties will fairly and adequately protect the interests of the class."