Sequenom Settles Class Action Lawsuit
Sequenom stated it is settling the suit to avoid lengthy and costly litigation. In April 2009, the company reported employee mishandling of Down syndrome test results (see IBO 4/30/09, 9/30/09). The $14 million payment will be paid by insurance proceeds. SEC and FBI investigations are ongoing
San Diego, CA 1/15/09—Sequenom has settled a consolidated securities class action lawsuit. Filed between April and June 2009 in the US District Court for the Southern District of California, the 12 suits charged certain Sequenom’s officers and directors with violations of the antifraud provision of US securities law by making false and misleading statements about the company’s Down syndrome test that was under development (see IBO 4/30/09). Under the settlement, Sequenom has agreed to pay $14 million, to issue 9.95% of common stock to the plaintiffs class and to implement changes in corporate governance policies, protocols and practices.
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