Emergent BioSolutions Faces Derivative Litigation Over Alleged Breaches of Fiduciary Duty and Regulatory Failures

Reuters
31 May
Emergent BioSolutions Faces Derivative Litigation Over Alleged Breaches of Fiduciary Duty and Regulatory Failures

Emergent BioSolutions Inc. has reached a settlement in a series of derivative actions alleging breaches of fiduciary duty by certain current and former officers and directors. The claims centered on the company's Bayview, Maryland facility, which allegedly failed to meet regulatory standards and produce safe vaccine substances. The plaintiffs argued that Emergent's leadership did not establish adequate monitoring systems and ignored warnings, including FDA inspection reports that highlighted repeated failures in quality control and manufacturing practices. The settlement resolves these allegations, with all related claims being dismissed with prejudice. The Delaware Court had previously stayed the action pending the resolution of a related securities case.

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