Inter-Local Pension Fund v. Rigel Pharmaceuticals

Class Action Complaint against Rigel Pharmaceuticals

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This is a securities class action complaint on behalf of purchasers of Rigel Pharmaceuticals, Inc. between 12/13/2007 and 10/27/2008 based on a purported false and misleading registration statement and prospectus in connection with the company's February 2009 securities offering.

The complaint alleges that Rigel was developing a new drug, R788, for the treatment of rheumatoid arthritis. On December 13, 2007, Rigel issued a press release touting the positive summary results of a then-recently-completed clinical trial of R788 in 189 patients in the U.S. and Mexico. In response to the announcement of the summary results of the Study, Rigel’s common stock price more than tripled in one day, from $8 per share to $25.95. On January 24, 2008, Rigel filed the Registration Statement for its offering of common stock. On February 6, 2008, Rigel closed the Offering, selling five million shares of common stock at a price of $27 per share for proceeds of $135 million. Then, on October 27, 2008, Rigel presented the full results of the Study at a meeting of the American College of Rheumatology and on an investor conference call. Those results contained adverse information omitted from the Company’s December 13, 2007 press release and the Registration Statement and subsequent presentations. When this adverse information about the Study’s results was finally disclosed, Rigel’s stock price plunged 38% in a single day, from $14.41 to $8.84.

The complaint was filed by Coughlin Stoia Geller Rudman & Robbins LLP.

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Reference Info:Pleadings | Federal, 9th Circuit, California | United States


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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