Supremes to Review Amgen Stock Fraud Case

The U.S. Supreme Court will decide whether investors must prove that misinformation from Amgen (AMGN) (AMGN) Inc. propped up its stock price before they can pursue a class-action stock-fraud suit against the world’s largest biotechnology company. The justices today agreed to review an appeal by Amgen in a case alleging the company and its executives misled investors for more than three years about safety questions involving its Aranesp and Epogen anemia drugs. Amgen says a federal appeals court ruling makes it too easy to mount class-action lawsuits representing thousands of people, pressuring companies to pay settlements for even frivolous allegations rather than risk huge damages in a trial. Amgen’s appeal is backed by the U.S. Chamber of Commerce and the pharmaceutical industry’s trade group.

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