SANOFI-AVENTIS INVESTORS WIN REVIVAL OF ZUMULTI LAWSUIT
A US judge has reinstated a lawsuit accusing Sanofi-Aventis of misleading investors about the likelihood of US regulatory approval of its weight-loss pill Zimulti, Bloomberg reports.
US District Judge, George Daniels in Manhattan said that shareholders can amend their complaint and refile it. Daniels had dismissed the lawsuit 25th September, saying that Sanofi-Aventis was not reckless when it interpreted the drug's side effects to be either statistically insignificant or not severe enough to block approval.
An FDA panel in June 2007 rejected the pill, which was linked to suicides, sending company shares to their biggest drop in three years. Lawyers for the investors submitted a proposal that "cures the fatal deficiencies" in their original complaint and "adequately pleads violations of the federal securities laws," Daniels said in his one-page order.