Regeneron Pharmaceuticals Inc. said Friday that it hasreceived amended complaints in two class-action lawsuitsrelated to its April 2 initial public offering.
The amended complaints claim that Regeneron of Tarrytown,N.Y., violated securities laws by failing to recirculate anamended preliminary prospectus to reflect an increase in thesize of the offering to 4.5 million shares from 3 millionshares. The company circulated a final prospectus to allpurchasers.
Regeneron completed its IPO at $22 per share, raising $99million. The company's stock (NASDAQ:REGN) closed Friday at$11.50, down 50 cents.
"Plaintiffs in effect have admitted that their originalcomplaints failed to state a cause of action, because theamended complaints abandon the plaintiff's initial cause ofaction," said Paul Lubetkin, general counsel of Regeneron.
Regeneron plans to file a motion to dismiss the amendedcomplaints within five weeks, said Fredric Price, chieffinancial officer.
The original action alleged that Regeneron violated securitieslaws by failing to adequately discuss the company's pro formaloss for the first quarter ended March 31. A third class actioncomplaint, which hasn't been amended, makes the sameallegation. Regeneron said this complaint is without basis infact. -- Karen Bernstein
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