Savient Investor Asks 2nd Circ. To Reopen Fraud Case

Law360, New York (November 8, 2011, 4:53 PM EST) -- A Savient Pharmaceuticals Inc. investor whose stock value dropped after the company revealed serious incidents related to an experimental drug asked the Second Circuit on Tuesday to reopen his class action, saying the bad news should not have been kept secret.

Savient, which developed the drug pegloticase to treat gout in sick, treatment-resistant patients, allegedly misled the investing public by failing to quickly disclose that five patients had serious cardiovascular incidents while taking pegloticase in trials.

Savient's eventual disclosure of the news in 2008 caused its...
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