Ariad Faces Derivative Suit After Directors Cut Ties

Law360, New York (February 17, 2009, 12:00 AM EST) -- Months after the unexpected resignation of its four independent directors, Ariad Pharmaceuticals Inc. has been hit with a derivative lawsuit by shareholders.

The drugmaker disclosed the suit Monday in a filing to the U.S. Securities and Exchange Commission, saying its executives had been accused of breaches of fiduciary duties.

The complaint was filed in the Delaware Court of Chancery on Feb. 13, naming each of the company’s remaining directors as defendants and Ariad itself as a nominal defendant.

The company said the suit misrepresented information from...
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