Thursday, November 7, 2013

Masters v. GlaxoSmithKline case brief

Masters v. GlaxoSmithKline case brief summary
271 Fed.Appx. 46 (2008)

Lead plaintiff challenged the United States District Court for the Southern District of New York's dismissal of his second amended putative class action complaint alleging securities fraud claims under § 10(b) of the Securities Exchange Act and Rule 10b-5 against defendants, a pharmaceutical corporation and its chairman.

The complaint alleged that defendant violated the Exchange Act in four ways: (1) by making false statements and omissions regarding the viability of defendant's patents for its drugs Paxil and Augmentin, and engaging in a course of frivolous litigation with respect to those patents; (2) by suppressing information about Paxil's addictiveness and withdrawal effects; (3) by violating the Federal False Claims Act by overcharging Medicare and Medicaid for defendant's pharmaceutical products, resulting in multiple lawsuits against defendant; and (4) by misrepresenting the safety and efficacy of the use of Paxil in children and adolescents.

  • The court held that the first three claims were properly dismissed as untimely because plaintiff was on inquiry notice with respect to these claims no later than two years prior to when he filed his original complaint, pursuant to 28 U.S.C.S. § 1658(b). 
  • Section 1658(b)extended the statute of limitations period applicable to § 10(b) of the Exchange Act and Rule 10b-5. 
  • Finally, the court held that plaintiff's fourth claim failed due to a lack of materiality and failure to allege loss causation pursuant to 15 U.S.C.S. § 78j(b).

The court affirmed the judgment.

Suggested Study Aids For Securities Regulation Law
Securities Regulation in a Nutshell, 10th (Nutshell Series)
Securities Regulation: Examples & Explanations, 5th Edition
Securities Regulations: The Essentials

No comments:

Post a Comment

The Evolution of Legal Marketing: From Billboards to Digital Leads Over the last couple of decades, the face of legal marketing has changed a l...