Top US court allows Amgen class action suit

The US Supreme Court ruled Wednesday in favor of investors seeking to join a class-action lawsuit against pharmaceutical giant Amgen for downplaying safety concerns about two anemia drugs.

The high court's 6-3 ruling made it easier for shareholders to band together in a class suit without having to first show that misinformation had inflated the company's stock price materially or fraudulently.

Connecticut Retirement Plans and Trust Funds, which brought the suit on behalf of Amgen stock buyers, said the Thousand Oaks, California company had minimized the risks of taking anemia drugs and .

Justice Ruth Bader Ginsburg, writing for the majority, said that it would "waste judicial resources" to demand that investors prove the impact of a fraud before even examining the matter at hand.

"Amgen would have us put the cart before the horse," she added.

"Congress, we count it significant, has addressed the settlement pressures associated with securities-fraud class actions through means other than requiring proof of materiality at the class-certification stage."

The ruling upheld a lower court decision for the lawsuit to proceed as a class action case.

add to favorites email to friend print save as pdf

Related Stories

US Supreme Court allows cholesterol drug suit

Jun 16, 2011

The US Supreme Court on Thursday allowed a class-action suit by alleged victims of the anti-cholesterol drug Baycol, which was taken off the market in 2001 by German pharmaceuticals giant Bayer.

Recommended for you

Seaweed menace may yield new medicines

1 minute ago

An invasive seaweed clogging up British coasts could be a blessing in disguise. University of Greenwich scientists have won a cash award to turn it into valuable compounds which can lead to new, life-saving drugs.

Supercomputers link proteins to drug side effects

Oct 20, 2014

New medications created by pharmaceutical companies have helped millions of Americans alleviate pain and suffering from their medical conditions. However, the drug creation process often misses many side ...

User comments