Biovail Corp said Monday that a New York court last week dismissed a securities fraud lawsuit against the Canadian drugmaker.
The class action suit, which was filed last year, claimed that Biovail misled investors about the regulatory approval status of its BVF-033 treatment, also known as “aplenzin”, a salt formulation version of the generic antidepressant Wellbutrin XL.
But the court ruled the lawsuit “a legally baseless strike suit” and denied the plaintiff’s request to re-plead its case, Biovail said in a statement.
Company officials were not available for comment.
Biovail shares, which have fallen 3.6 percent since the company cut its dividend by 76 percent last week, were down 1 percent at C$12.95 on the Toronto Stock ExchangeMonday afternoon.
The claim alleged that Biovail’s application to the U.S. Food and Drug Administration for approval of BVF-033 did not meet the requirements set forth by the agency, and that the company failed to inform investors that FDA approval would therefore be delayed.
The suit covered the period between Dec. 14, 2006, and July 19, 2007, and sought to recover damages on behalf of buyers of Biovail shares.
Last month, Biovail announced that an extended-release tablet of the antidepressant formula was available in the United States.
($1=$1.16 Canadian) (Reporting by Scott Anderson; editing by Peter Galloway)
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