Class Action Adds To Drug Maker's Troubles

Law360, New York (July 14, 2006, 12:00 AM EDT) -- A month after laying off half its workforce, cash-starved NPS Pharmaceuticals Inc. became the defendant Wednesday in a class action lawsuit that accuses it of concealing information about the bone-density drug Preos in order to artificially inflate the company’s stock.

According to the suit, filed in the U.S. District Court in Utah, NPS made misleading and false statements about Preos, which allowed it to sell 7 million shares worth $79 million between Aug. 10, 2005 and May 2, 2006.

Over that time, company executives also obtained...
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