Cancer Drug Firm Duped Investors In $26M Offering: Suit

Law360, New York (February 3, 2012, 8:47 PM EST) -- Biopharmaceutical company GenVec Inc. raised $26.2 million from shareholders to develop a pancreatic cancer treatment it knew to be ineffective, according to a putative class action suit filed Friday in Maryland federal court.

Satish Shah launched the suit on behalf of investors in Gaithersburg, Md.-based GenVec, alleging the company artificially inflated its stock price through a series of misleading press releases before announcing in March 2010 that the treatment, TNFerade, had foundered during a pivotal clinical study called a PACT trial.

“Defendants knew or recklessly disregarded...
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