Emergent BioSolutions (EBS) $40M Investor Settlement

D. Maryland

Court

8:21-cv-00955

Case number

10 Mar 2020

Class period Start

04 Nov 2021

Class period End

Emergent BioSolutions has agreed to a $40M settlement with $EBS investors over claims that it hid issues with its COVID-19 vaccine deal with J&J.

Outline

The lawsuit claims that Emergent BioSolutions misrepresented its vaccine manufacturing ability and did not disclose serious quality control problems at its Baltimore facility. These issues led to the contamination of millions of COVID-19 vaccine doses. Because of this, investors were misled into believing the company had better manufacturing capabilities and stability than it did. When the truth about these issues was revealed, the stock price dropped by 40%, causing significant losses for shareholders.
Timeline
March 31, 2021: Media reports reveal that 15 million doses of the Johnson & Johnson vaccine were contaminated at Emergent's Baltimore plant, causing an initial 15% drop in stock price.
April 19, 2021: A class-action lawsuit is filed, alleging that Emergent misled investors by overstating its ability to produce COVID-19 vaccines.
November 2021: Emergent discloses that the contamination incident and other manufacturing issues caused substantial operational disruptions, with the total stock drop reaching 40% over several months.
September 13, 2024: Emergent BioSolutions announces a $40 million settlement to resolve claims related to misleading statements about its vaccine manufacturing capabilities.
Background

During the COVID-19 pandemic, Emergent was contracted to manufacture vaccines for Johnson & Johnson and AstraZeneca. However, in March 2021, it was revealed that Emergent had cross-contaminated millions of doses of vaccines due to poor manufacturing practices. This led to the loss of 15 million doses and raised serious questions about the company’s quality control systems. Investors claim that Emergent failed to disclose these manufacturing problems and misrepresented its ability to produce the vaccines, which caused the stock to drop by 15% initially, and by 40% in total as more information surfaced, wiping out millions in market value.

What Investors Should Expect

Emergent has agreed to a $40 million settlement to resolve all claims related to misleading statements about its manufacturing capabilities.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.

Case Status

Stipulative Settlement

Alleged Offence

Misleading Statements,

Financial Misrepresentation

Suspected Party

Directors,

Management,

Shareholder

Security Type

Stocks

Trade Direction

Long

Payout per Share

1.95

Filing date

19 April 2021

Plaintiffs

Nova Scotia Health Employees’ Pension Plan; City of Fort Lauderdale Police & Firefighters’ Retirement System

Attorneys

Pomerantz LLP ; Cohen Milstein Sellers & Toll PLLC

Defendants

Robert G. Kramer Sr.; Syed T. Husain

Judge

Deborah L. Boardman

Administrator

Strategic Claims Services

Settlement agreement date

2024-09-12

Attorney fee

$12,499,998

Class wide damages

$305,500,000

Trades matching type

FIFO

+$40,000,000

Cash Settlement Amount