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Savient Pharma Says Court Dismissed Lawsuit

From Associated Press (September 30, 2010)

EAST BRUNSWICK, N.J. -- Drug maker Savient Pharmaceuticals Inc. said Thursday a U.S. district court dismissed a lawsuit alleging the company delayed disclosing serious side effects in clinical trials of its gout drug Krystexxa.

Savient said the U.S. District Court for the Southern District of New York dismissed the lawsuit, which alleged Savient hurt investors by not promptly disclosing serious side effects experienced by five patients in two late-stage trials of Krystexxa.

According to Savient, the court found the plaintiffs did not set out facts suggesting Savient acted with intent to defraud, recklessness or a conscious disregard for the truth. The court also found that the plaintiffs did not show Savient intentionally misbehaved or was reckless in disclosing the data and did not show the company made false or misleading statements or significant omissions that harmed investors.

The lawsuit was filed in November 2007. Savient Savient and other defendants filed a motion to dismiss in June 2009.

The Food and Drug Administration approved Krystexxa on Sept. 14 as a treatment for cases of gout that have not responded to other therapies.

Shares of Savient were unchanged at $22.87 in aftermarket trading. The stock rose 10 cents during the day.


Posted: October 2010