Schering-Plough Corporation Securities Litigation

Beginning on February 16, 2001, seventeen class actions alleging violations of federal securities laws by some or all of the Defendants were filed in this Court. In an Order dated July 2, 2001, the Court consolidated all seventeen cases (collectively, the "Action").

On July 2, 2001, the Court also appointed FSBA as Lead Plaintiff and approved Barrack Rodos & Bacine as Lead Counsel.

On October 12, 2001, Lead Plaintiff filed and served the Consolidated Amended Class Action Complaint ("Complaint"). The Complaint alleges that the Defendants knowingly or recklessly made false and misleading statements and omissions that failed adequately to disclose serious and widespread deficiencies in Schering-Plough's manufacturing and quality operations and that such deficiencies gave rise to a serious risk that the United States Food and Drug Administration ("FDA") would delay approval of the company's New Drug Application for an allergy medicine known as Clarinex®. Plaintiffs allege that as a result of these false and misleading statements and omissions, Defendants violated Section 10(b), 20(a) and 20A of the Securities Exchange Act of 1934.

On December 14, 2001, Defendants moved to dismiss the Complaint on various grounds. By Order dated May 22, 2002, the Court denied Defendants' motion to dismiss.

On July 22, 2002, Defendants answered the Complaint, denying all allegations of liability, asserting affirmative defenses and demanding judgment on the merits dismissing the complaint. Defendants deny any wrongdoing and specifically have denied the claims made by Plaintiffs in this Action. Defendants maintain that Schering-Plough's manufacturing and quality issues were known by the investing public and were duly and accurately disclosed in Schering-Plough's filings with the Securities and Exchange Commission. Defendants further maintain that Schering-Plough's public statements during the Class Period did not predict or promise that Clarinex® would be approved, and that, in any event, Defendants had no basis to believe that the approval of Clarinex® would be delayed.

On July 31, 2002, Lead Plaintiff filed a motion for class certification pursuant to Federal Rule of Civil Federal Rule of Civil Procedure 23 seeking certification of a class consisting of the following:

All persons who purchased the securities of Schering-Plough Corporation ("Schering-Plough") during the period from May 9, 2000 through and including February 15, 2001. Excluded from the class are defendants, members of the immediate family of the Individual Defendants, any subsidiary, affiliate or control person of such person or entity, officers and directors of Schering-Plough and the legal representatives, heirs, successors or assigns of each such excluded party.

Read More (PDF: 296 KB)

Contact us for more information