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Friday, December 20, 2013

Sanofi faces U.S. class action over MS drug Lemtrada, (NYSE: SNY)

A U.S. law firm is launching a class action against France's Sanofi over what it calls misleading statements on the safety and efficacy of its multiple sclerosis drug Lemtrada. Sanofi acquired Lemtrada when it bought U.S. biotech firm Genzyme for $20.1 billion in 2011. The drug's prospects took centre-stage in a drawn-out takeover battle and led to a deal in which Genzyme shareholders received listed contingent value rights (CVRs) linked to Lemtrada's future success.Law firm Lieff Cabraser Heimann & Bernstein, LLP said on Friday it was bringing litigation on behalf of all purchasers of the CVRs between March 6, 2012 and Nov. 7, 2013.The firm alleged that over this period, Sanofi and some of its senior executives made false and misleading statements about its business and the prospects for Lemtrada, and misled investors over the design of its clinical trials on the drug.A spokesman for Sanofi said the company does not comment on pending litigation.

Sanofi SA, formerly Sanofi-Aventis, is a global and diversified healthcare company based in France. Shares of SNY fell by 0.29% or $-0.15/share to $51.38. In the past year, the shares have traded as low as $44.50 and as high as $55.94. On average, 1182550 shares of SNY exchange hands on a given day and today's volume is recorded at 286993.