Savient Hid Cash Woes Before Ch. 11 Sale, Investors Say
By Stewart Bishop
Law360, New York (January 16, 2014, 2:58 PM ET) -- Investors in bankrupt Savient Pharmaceuiticals Inc. on Wednesday hit the drug developer’s officers and directors with a shareholder class action in Delaware federal court, claiming Savient misrepresented its financial condition before it filed for Chapter 11 and was sold.
The stockholders argue that while Savient repeatedly stated last year that it had sufficient resources to fund operations until at least August 2014, in fact the company was planning for a stand-alone restructuring under which it would experience a short-term revenue drop that could exhaust its cash...