BioScrip Inc. Hit With Shareholder Suit Over Exjade Probe

Law360, Los Angeles (October 2, 2013, 5:40 PM EDT) -- BioScrip Inc. was hit with a proposed class action Monday alleging shareholders suffered losses when the company's stock price declined following the announcement of a law enforcement investigation into its distribution of Novartis Pharmaceuticals Corp.'s iron reduction drug Exjade. 

Shareholder Timothy Faig claimed Elmsford, N.Y.-based BioScrip and four of its executives misled investors by failing to disclose that the company's distribution of Exjade through its specialty pharmacy operations allegedly violated the False Claims Act and other federal and state statutes.

When BioScrip disclosed in September that...
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