RADNOR, Pa., May 12, 2021 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP reminds investors of Emergent BioSolutions Inc. (NYSE: EBS) ("Emergent") that a securities fraud class action lawsuit has been filed on behalf of those who purchased or acquired Emergent common stock between July 6, 2020 and March 31, 2021, inclusive (the "Class Period").
Emergent is a specialty biopharmaceutical company that develops vaccines and antibody therapeutics for infectious diseases.
The Class Period commences on July 6, 2020, when Emergent issued a press release announcing that it had signed a five-year agreement for large-scale drug substance manufacturing for Johnson & Johnson's ("J&J") lead COVID-19 vaccine candidate. Under the agreement, valued at $480 million for the first two years, Emergent would begin manufacturing J&J's COVID-19 vaccine in 2021 at Emergent's manufacturing facility in Baltimore. In announcing the agreement, Emergent's President and Chief Executive Officer, Robert G. Kramer Sr., highlighted Emergent's "manufacturing strength to address the COVID-19 pandemic." Emergent's Senior Vice President, Syed T. Husain, added that Emergent had "the expertise and capabilities to meet the long-term needs of [its] customers and provide ongoing commercial manufacturing to benefit patients." Shortly thereafter, on July 27, 2020, Emergent issued a press release announcing another deal with AstraZeneca to provide services to support production of its COVID-19 vaccine candidate. This deal, valued at approximately $174 million, also contracted Emergent to produce drug substance manufacturing services at its Baltimore facility, beginning in 2020, at a large scale for commercial supply.
The truth about Emergent was revealed on March 31, 2021 after the close of markets, when The New York Times published an article reporting on the accidental contamination of COVID-19 vaccines developed by J&J and AstraZeneca at the Emergent manufacturing plant in Baltimore. The New York Times article stated that in late February 2021, employees at Emergent's Baltimore manufacturing plant inconceivably "mixed up" ingredients of the two different COVID-19 vaccines, contaminating up to 15 million doses of J&J's vaccine and forcing regulators to delay authorization of the plant's production lines. Further, The New York Times article noted that Emergent's massive vaccine lot contamination went undiscovered for days until J&J's quality control checks uncovered it, raising questions about Emergent's failed training and supervision of its employees during the production process. Following this news, Emergent's stock price dropped from a close of $92.91 on March 31, 2021, down to a close of $80.46 on April 1, 2021, a drop of over 13%. As more facts unfolded in the media, Emergent's stock price continued to decline, closing at $78.62 on April 5, 2021.
The complaint alleges that throughout the Class Period, the defendants failed to disclose that: (i) Emergent's Baltimore plant had a history of manufacturing issues increasing the likelihood for massive contaminations; (ii) these longstanding contamination risks and quality control issues at Emergent's facility led to a string of U.S. Food and Drug Administration citations; (iii) Emergent previously had to discard the equivalent of millions of doses of COVID-19 vaccines after workers at the Baltimore plant deviated from manufacturing standards; and (iv) as a result of the foregoing, the defendants' public statements about Emergent's ability and capacity to mass manufacture multiple COVID-19 vaccines at its Baltimore manufacturing site were materially false and/or misleading and/or lacked a reasonable basis.
Emergentinvestors may, no later than June 18, 2021, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
CONTACT: Kessler Topaz Meltzer & Check, LLP James Maro, Jr., Esq. Adrienne Bell, Esq. 280 King of Prussia Road Radnor, PA 19087 (844) 887-9500 (toll free) [email protected]