Columbia Labs Sued Over Drug-Related Stock Drop

Law360, New York (February 3, 2012, 7:53 PM EST) -- Pharmaceutical company Columbia Laboratories Inc., whose touted premature-birth-preventing drug recently failed to win a key U.S. approval, was hit with a class action Friday by an investor who claims he was misled by the company's early hype.

Investor Floyd Wright says that the company, its CEO and other executives inflated the price of Columbia's stock by touting vaginal gel Prochieve as a drug that could help cut the number of premature births — a problem the company said affects more than 10 percent of pregnancies and...
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