Investors Accuse Chelsea Of Overselling Drug's Potential

Law360, New York (April 6, 2012, 8:50 PM EDT) -- Investors filed a pair of proposed securities class actions in North Carolina federal court Wednesday accusing Chelsea Therapeutics International Ltd. of making false and misleading statements regarding the development of hypotension drug Northera.

The suits claim the Charlotte, N.C.-based drug developer misled investors about Northera's progress through the U.S. Food and Drug Administration's approval process. The plaintiffs say they purchased the securities at artificially inflated prices and were financially injured as the company's stock dropped and the drug failed to get approved for sale.

“We believe...
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