Securities Litigation: Discovery Labs

In re Discovery Laboratories Securities Litigation
USDC ED Pennsylvania
FDA

Company background

Litigation background

Lead plaintiff

SEC disclosure

Form 10-Q 8.08.08 at page 27
On April 29, 2008, the Third Circuit Court of Appeals affirmed the dismissal by the United States District Court for the Eastern District of Pennsylvania of a securities class action brought against us and certain of our executive officers. On March 15, 2007, the District Court had granted defendants motion to dismiss the Second Consolidated Amended Complaint filed by the Mizla Group, individually and on behalf of a class of investors who purchased our publicly traded securities between March 15, 2004 and June 6, 2006, alleging securities laws-related violations in connection with various public statements made by our Company. The amended complaint had been filed on November 30, 2006 against us, our Chief Executive Officer, Robert J. Capetola, and our former Chief Operating Officer, Christopher J. Schaber, under the caption In re: Discovery Laboratories Securities Litigation and sought an order that the action proceed as a class action and an award of compensatory damages in favor of the plaintiffs and the other class members in an unspecified amount, together with interest and reimbursement of costs and expenses of the litigation and other equitable or injunctive relief.

SEC filings

Press release
Alleged that defendants made misrepresentations and/or omissions regarding the progress of U.S. regulatory approval for its lead product Surfaxin
Company revealed that Surfaxin's "stability" (its ability to be stored for long periods without any change in its efficacy or its chemical profile) had not been achieved and that such failure would cause a "significant delay in the U.S. regulatory process."
Common stock sank 53% on announcement

Complaint