Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN) Gets Dragged To Court


Dallas, Texas 10/17/2013 (Financialstrend) – Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN) is a development stage biotech firm involved in research and development of new drugs. It has a market cap of $274 million with net loss of $58 million which has accumulated over the past 12 months.

The shares of the stock are trying to stage a slow recovery over the past couple of days from the lows they had plummeted too around September 30, after it was announced that FDA will not allow the clinical trial of drug Sovaprevir for the time being. The investors had exited the stock in droves post the announcement leading to a practical melt down in the market value of the stock. Close to 58% dip in value was observed over a single day leading to fears of an imminent suspension of trading of the stock.

ACHN seemed to survive the blood bath to fight another day. And fight it has too, since investors who suffered in the steep dip in value of the company stock have decided to take the drug maker to court. On October 8 ACHN reported to SEC that a class action lawsuit has been filed against a few current and former executives of the company. The case has been filed with United States District Court for the District of Connecticut.

 The class action has been taken up on behalf of all shareholders who bought stock of the company between April 21, 2012 and September 27, 2013. The company officials have been accused of deliberately making false and misleading statements about the potential of their target drug “Sovaprevir” which was being tested to treat Hepatitis C. In the same submission ACHN has clarified that it is strongly denouncing the allegations and indicated managements strong resolve to effectively defend the good name of the company and the individuals involved.