Class Law poised for British Biotech action
Monday 13 January 2003
Class Law, the combative legal firm, is stepping up the pressure on British Biotech, saying it will begin legal proceedings against the company by the end of this month.
The solicitors say they have the backing of a number of institutional investors to launch an action alleging the pioneering biotech company issued misleading information to the stock market in the Nineties.
It has given investors until the end of this week to join a claim for damages, which could run into tens of millions of pounds – but British Biotech is considering ways to get Class Law to "put up or shut up" after years of false starts to a legal claim the company insists is without foundation.
British Biotech was floated on a tide of optimism that its novel drug technology would yield a lucrative treatment for cancer, and at one stage the company was worth £2bn. But the product, marimastat, failed its clinical trials. The company is now valued at just £30m.
The clinical research director, Andrew Millar, was sacked after claiming early trial results from marimastat were discouraging, and Class Law claims the company issued misleading statements about the likelihood of the treatment reaching the market.
Stephen Alexander, partner at Class Law, said several institutions had signed up to the claim for damages caused by the débâcle. "We are closing the books on 17 January. The train is leaving; investors either get on or they don't. We will then be in a position to present the particulars of the claim and try to start negotiations with the company."
British Biotech sources pointed out that last summer Class Law said it would ask for the disclosure of internal documents, but no such legal request has ever been made.
- 1 Which country would be hardest to invade?
- 2 The man who filmed the Freddie Gray video has been arrested at gunpoint
- 3 Royal baby girl born: Duchess of Cambridge's second child will be a princess thanks to Queen
- 5 Teen suffers embarrassing wardrobe malfunction in front of deputy PM
Which country would be hardest to invade?
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
The man who filmed the Freddie Gray video has been arrested at gunpoint
UK weather: Severe weather warning for snow and torrential rain over bank holiday weekend
Royal baby girl born: Duchess of Cambridge's second child will be a princess thanks to Queen
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
Indonesia executions live: 'Hysterical' families heard prisoners being shot dead by firing squad
General Election 2015: SNP and its activists 'openly racist' towards the English, Farage says
EU exit would hit UK economy much harder than neighbouring countries, study finds
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
iJobs Money & Business
£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...
£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...
£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...
£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...