Philadelphia Biotechnology Company Hemispherx Biopharma has agreed to pay a $2.75 million settlement to resolve a class action lawsuit filed on behalf of shareholders. The plaintiffs allege that Hemispherx representatives made “material misrepresentations and omissions” concerning the success of clinical trials for the company’s latest drug candidate Ampligen while soliciting investments.
In 2013, the FDA rejected Hemispherx’s application to market Ampligen, a vaccine enhancer, after an advisory panel determined there was a lack of evidence to substantiate the drugs effectiveness. As a result, Hemispherx stock plunged in value by 43 percent, and the suit seeks to recover damages for investors who purchased or acquired common stock between March 14, 2012 and Dec, 2012. The proposed $2.75 million settlement cannot not be finalized until the final approval hearing scheduled to take place on July 22 at the U.S. District Court in Philadelphia.
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