ARIAD Pharmaceuticals (ARIA) shares edged higher Wednesday after the oncology company said a class-action suit against it had been dismissed. The stock was up 0.8% recently at $8.45, toward the top end of its 52-week range of $4.90 to $9.19.
The company said the U.S. District Court for the District of Massachusetts dismissed the shareholder class-action lawsuit filed in late 2013 in connection with events leading up to the temporary suspension of the marketing and commercial distribution of Iclusig (ponatinib) on Oct. 31, 2013, and subsequent re-launch in January 2014 based on revised U.S. prescribing information and a risk evaluation and mitigation strategy.
The suit alleged that certain of the company defendants made a series of false and misleading statements regarding the safety, efficacy and commercial prospects of Iclusig. The court granted the company’s motion to dismiss the lawsuit, concluding that the plaintiffs failed to establish that any such statements violated the company’s disclosure obligations as asserted in the complaint.
“We are pleased that for the second time in as many weeks, the court has granted our motion to dismiss what we believed from the outset was another meritless lawsuit,” said Chairman and CEO Harvey J. Berger. “Our corporate values of integrity and mutual respect are always at the forefront as we continue to focus on executing our plan for sustained revenue growth and operational excellence, leading to anticipated profitability in 2018.”