U.S. investors filed a class action lawsuit against the British-Swedish pharmaceutical company AstraZeneca, which produces a vaccine for COVID-19, and its executives, for withholding data that caused the stock to fall. This was reported by the law firm Robbins Geller Rudman & Dowd LLP.
“The lawsuit alleges that the defendants misrepresented facts about AZD1222’s ongoing clinical trials and concealed problems that arose during the trial, including a dosing error that the company discovered early on but failed to disclose to investors,” according to a press release from the law firm.
The lawsuit was filed Jan. 26 in federal district court in the Southern District of New York from the Monroe County Employees Retirement System.
It is clarified that there were negative media reports that exposed problems and shortcomings in AstraZeneca’s clinical trials for AZD1222.
“AstraZeneca’s ADS price fell to $52.60 by market close on Nov. 25, 2020, down 5% over three trading days,” the release said.
The press release notes that the vaccine maker knew about problems and errors in clinical trials and deliberately withheld them from investors, artificially inflating its share price.
The day before, on January 26, AstraZeneca denied the information appeared in the media about the low effectiveness of its vaccine against coronavirus among persons over 65 years. According to a company representative, reports that the effectiveness of the vaccine is only 8% in the elderly population are incorrect.
Earlier, on Jan. 12, AstraZeneca applied for registration of the coronavirus vaccine with the European Medicines Agency (EMA).
On Jan. 22, European Commissioner for Health Stella Kyriakides reported that AstraZeneca, without waiting for its COVID-19 vaccine to be officially certified in the European Union (EU) market, said it had more than halved shipments of the drug.