- Reuters reported that a US judge dismissed a shareholder lawsuit AstraZeneca Plc AZN cover-up issues developing its COVID-19 vaccine, making it unlikely to receive FDA approval.
- The judge said the proposed action did not identify any misleading statements or adequately allege that AstraZeneca intended to defraud shareholders.
- Shareholders said AstraZeneca’s stock fell in late 2020 and early 2021 as it became clear that clinical trials for its vaccine had been “hampered” by design and execution flaws and poor communication with regulators and the public.
- Related: AstraZeneca CEO says no COVID regrets and looks to oncology acquisitions.
- The shareholders said the mistakes were giving some participants half the intended dosages, not testing enough people over the age of 55 and allowing subtle differences between patient subgroups to undermine the validity of the result.
- Oetken said AstraZeneca has no “general obligation” to disclose “negative facts” about the trials.
- Chief Executive Pascal Soriot was not liable for AstraZeneca “moving fast but not cutting corners” and that the company was not liable for overall promises to “follow the science” and make safety a priority.
- “Even if the defendants had access to the omitted facts, the secrecy here does not allow a strong inference of willful misconduct or recklessness,” the judge wrote.
- Price promotion: AZN shares are up 0.32% to $61.95 during the premarket session last check Tuesday.
- Photo by Paul McManus from Pixabay
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