US Judge Dismisses Shareholder Lawsuit Over AstraZeneca's COVID-19 Vaccine Disclosures: Report

US Judge Dismisses Shareholder Lawsuit Over AstraZeneca's COVID-19 Vaccine Disclosures: Report
  • Reuters reports that a U.S. judge dismissed a shareholder lawsuit claiming AstraZeneca Plc AZN concealed problems in developing its COVID-19 vaccine, making it unlikely to win FDA approval.
  • The judge said the proposed action failed to identify any misleading statements or adequately allege that AstraZeneca intended to defraud shareholders.
  • Shareholders said AstraZeneca stock fell in late 2020 and early 2021 as it became clear that clinical trials for its vaccine had been "hamstrung" by design and execution flaws and poor communications with regulators and the public.
  • Related: AstraZeneca's CEO Says There Are No COVID Regrets, Looks For Oncology Acquisitions.
  • The shareholders said the failures included giving some participants half the designed dosages, not testing enough people over age 55, and allowing subtle differences among patient subgroups to undermine the validity of the finding.
  • Oetken said AstraZeneca had no "generalized duty" to disclose "negative facts" about the trials.
  • Chief Executive Pascal Soriot was not liable for saying AstraZeneca was "moving quickly but without cutting corners" and that the company was not liable for general pledges to "follow the science" and make safety a priority.
  • "Even if defendants had access to the omitted facts, the nondisclosures here do not raise a strong inference of conscious misbehavior or recklessness," the judge wrote.
  • Price Action: AZN shares are up 0.32% at $61.95 during the premarket session on the last check Tuesday.
  • Photo by Paul McManus from Pixabay

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