Milberg Weiss Announces Class Action Lawsuit Against Dura Pharmaceuticals

Strategic Insights -

A class action lawsuit was commenced against Dura Pharmaceuticals Inc. by Milberg Weiss on behalf of investors who purchased Dura common stock between April 15, 1997, and February 24, 1998, alleging that the company made false and misleading statements about its sales, earnings, and product development. The lawsuit claims that Dura's stock price was artificially inflated due to these misrepresentations, causing investors to lose millions of dollars. The plaintiffs seek to recover damages on behalf of all purchasers of Dura common stock during the Class Period.

Key Takeaways:

  • The class action lawsuit was filed on January 27, 1999, in the United States District Court for the Southern District of California, on behalf of investors who purchased Dura common stock between April 15, 1997, and February 24, 1998.
  • The complaint alleges that Dura made false and misleading statements about its sales, earnings, and product development, causing the company's stock price to be artificially inflated to $53 in October 1997.
  • The lawsuit claims that Dura used this artificially inflated stock price to raise $375 million in capital from public investors and to attempt to acquire several other companies.
  • Dura insiders sold a total of 390,374 shares of their Dura stock at a high of $49.31 for $16.8 million in proceeds, despite owning a relatively small percentage of the company's stock.
  • As Dura's true financial situation became clear in 1998, the company's stock price plummeted, falling to as low as $8.
  • The lawsuit seeks to recover damages on behalf of all purchasers of Dura common stock during the Class Period.
  • The plaintiffs are represented by Milberg Weiss Bershad Hynes & Lerach LLP, a law firm with over 30 years of experience handling securities and antitrust class actions.

Statistics:

  • Dura's stock price was artificially inflated to $53 in October 1997 due to false and misleading statements made by the company.
  • Dura insiders sold a total of 390,374 shares of their Dura stock at a high of $49.31 for $16.8 million in proceeds.
  • Dura's stock price plummeted from $53 in October 1997 to as low as $8 in 1998.
  • Dura raised $375 million in capital from public investors using the artificially inflated stock price.

Sources:

  • Business Wire, "Milberg Weiss Announces Class Action Lawsuit Against Dura Pharmaceuticals Inc.", January 27, 1999
  • Milberg Weiss Bershad Hynes & Lerach LLP, "Class Action Lawsuit Against Dura Pharmaceuticals Inc."