Increased Activity and Emerging Patterns in Securities Litigation Against Life Sciences Companies
Client Memorandum

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We previously outlined the growing threat of securities class action lawsuits against life sciences companies and the importance of the United States Supreme Court’s decision in Omnicare. In that case, the Supreme Court addressed liability under the federal securities laws for statements of opinion, and gave important guidance for defending actions based on such statements. Since our last report, securities litigation against life sciences companies has continued to be highly active. Core filings (i.e., non-M&A filings) against life sciences and healthcare companies more than doubled between the first quarter of 2016 and the first quarter of 2017: from 15 in Q1 2016 to 36 in Q1 2017. There is no indication that this trend is likely to abate soon.