Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Emergent BioSolutions, Inc. (EBS)


NEW YORK, July 20, 2016 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Emergent BioSolutions, Inc. (“Emergent” or the “Company”) (NYSE:EBS) in the United States District Court for the District of Maryland on behalf of purchasers of common stock of Emergent between January 11, 2016 and June 21, 2016, inclusive (the “Class Period”), seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Exchange Act”).

According to the Complaint, the Company had no reason to believe that a renewal of its contract with the U.S. government would involve the same amount of purchases of BioThrax, but Emergent claimed it believed to receive the profitable renewal of its five-year exclusive anthrax vaccine procurement contract. Emergent also emphasized the demand for BioThrax was growing, that the U.S. government would fund Emergent’s development of its BioThrax production facilities, and claimed with no reasonable basis that this development would allow Emergent to manufacture roughly 20 to 25 million additional doses of BioThrax annually, that the U.S. government would purchase over the following five-year period in order to build the U.S. Strategic National Stockpile of anthrax vaccine to 75 million doses. Following the Defendants’ materially false and misleading statements, the Company stock traded at artificially inflated prices, reaching a Class Period high of $43.95 per share.  This inflation enabled certain Defendants to sell their personal shares of for proceeds of over $14.5 million.

On June 22, 2016, pre-market, the Company revealed that the U.S. government had issued two official solicitation notices specifying that it would only be purchasing 29.4 million doses of the BioThrax vaccine, roughly one-third less than the 44.75 million doses in the first agreement and far under the 75 million doses that Emergent had led their investors to believe.  Emergent also released that instead of more first-generation BioThrax anthrax vaccines, the U.S. government wanted newer and faster next-generation anthrax vaccines, and once one would be approved, bids would be placed to other companies and Emergent would lose its exclusivity.  Following news, Emergent stock dropped roughly $8.00 per share to close at $31.33 on June 22, 2016.

If you wish to serve as lead plaintiff, you must move the Court no later than September 19, 2016.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.