Amarin Corporation plc (AMNR) Misled the Investing Public Regarding the Impact Pending Patent Litigation Would Have on the Company’s Future Prospects
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Amarin Corporation plc (NASDAQ: AMRN) securities between December 5, 2018 and June 21, 2021, for violations of the Securities Exchange Act of 1934. Amarin is a biopharmaceutical company whose lead product since 2008 is Vascepa®.
According to the complaint, to protect its market share, Amarin obtained dozens of U.S. patents in connection with Vascepa, including for its formulation and method of use. Notwithstanding, Amarin was engaged in patent litigation against applicants who submitted Abbreviated New Drug Applications (“ANDA”) for generic drug products of Vascepa. During the relevant period, defendants gave the impression that such litigation was a cost of doing business and did not pose a real threat to the Company’s business or future prospects. Specifically, defendants failed to disclose that: (1) there was an increasingly high risk that certain of Amarin’s patents would be invalidated; (2) once invalidated, there was little to no chance of reversing that ruling; (3) the Company’s litigation was preventing it from effectuating a successful takeover; and (4) defendants were downplaying the true threat the ongoing ANDA litigation posed to the Company’s business and future prospects.
On March 30, 2020, Amarin announced that “the United States District Court for the District of Nevada’s rul[ed] in favor of the generic companies in the company’s patent litigation against two filers of abbreviated new drug applications, or ANDAs, for Amarin’s VASCEPA® (icosapent ethyl) capsule franchise.” On this news, Amarin’s share price plummeted over 70.5% to close at $4.00 per share on March 31, 2020. Despite reassuring investors that the Company would ultimately prevail on the patent litigation, on June 21, 2021, investors learned “that the Supreme Court rejected the [C]ompany’s bid to revive Vascepa patents.” On this news, Amarin’s share price fell 8.3%, to close at $4.54 on June 23, 2021. The stock has not recovered.
If you purchased shares of Amarin Corporation plc (AMRN) between December 5, 2018 and June 21, 2021, you have until December 23, 2021, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.