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Hemispherx Biopharma settles class action securities lawsuits

By (Breaking Legal News)

Hemispherx Biopharma agreed Tuesday to settle all of the pending securities class actions against the biotechnology company that had been consolidated in the U.S. District Court for the Eastern District of Pennsylvania.

The proposed settlement requires formal court approval.

Terms of the settlement were not disclosed. Hemispherx (AMEX:HEB) of Philadelphia said the settlement will be paid from the company's insurance coverage and will not result in the payment of any funds by the company. The company said the settlement ?expressly is not an admission of any culpability by Hemispherx or its officers.?

The series of lawsuits, according to documents Hemispherx filed with the Securities and Exchange Commission, alleged the company and certain officers misrepresented the status of Hemispherx?s new drug application for Ampligen, an experimental treatment for chronic fatigue syndrome the company has worked on for more than three decades.

Last November, the FDA rejected the company?s new drug application for Ampligen and recommended the company conduct additional studies to demonstrate effectiveness. Hemispherx has stated it is continuing to work with the FDA to address the issues raised by the agency.

http://www.stockdestiny.com/entry/Hemispherx-Biopharma-settles-class-action-securities-lawsuits

Full post as published by Breaking Legal News on September 05, 2010 (boomark / email).