On March 6, 2023, the Court granted final approval of the settlement in this matter.
For more information about the settlement, please see the settlement website at: https://www.portolasecuritieslitigation.com/
Berman Tabacco represented sole Lead Plaintiff Alameda County Employees’ Retirement Association in this class action, brought on behalf of investors in Portola Pharmaceuticals, Inc. (“Portola”), a biopharmaceutical company that develops and commercializes treatments for thrombosis and other hematologic diseases. Portola’s primary product is Andexxa, a reversal drug for apixaban- and rivaroxaban-treated patients with life-threatening or uncontrolled bleeding.
The action alleged that, between January 8, 2019 and February 28, 2020, defendants issued materially false and misleading statements related to the sales of Andexxa. Lead Plaintiff’s complaint alleged violations of Sections 10(a) and 20(a) of the Securities Exchange Act of 1934, and Sections 11, 12(a)(2), and 15 of the Securities Act of 1933. Specially, the complaint alleges that defendants’ positive statements about the company’s business, operations, and prospects were material misrepresentations of fact and/or lacked a reasonable basis. The company is alleged to have misrepresented (1) that it complied with GAAP, specifically as to recognizing revenue according to ASC-606 and under-reserving for returns given that Portola’s product Andexxa had a short-shelf-life and the company therefore offered a generous return policy on all expired product; and (2) customer demand and utilization of Andexxa for those that purchased it (e.g., hospital and hospital-system pharmacies), both as to depth (regularity of usage) and breadth (types of bleeds prescribed for).
The court denied defendants’ motion to dismiss lead plaintiff’s Third Amended Consolidated complaint and, after months of discovery and the filing of a motion for class certification, the parties reached a $17,500,000 settlement. The settlement was granted final approval on March 6, 2023.