Dendreon said Monday it has reached an agreement to settle for $40 million a shareholder class-action lawsuit over alleged false or misleading statements about the company and the prospects for its prostate cancer dug Provenge.
The Seattle biotechnology company said $38 million would be paid by its insurer. Dendreon and the three executives named in the suit continue to deny the allegations, said the company.
Dendreon in 2010 introduced the first treatment using a new approach of priming the patient’s own immune system to combat a specific cancer.
But its forecasts of hitting $350 million in sales the following year fell woefully short, and Dendreon since then has sharply cut its staff, sold one of its three manufacturing plants, and given up high-profile office space at downtown’s Russell Investments Center. It recently reported that its accumulated deficit since inception reached $1.95 billion at year-end.
The class-action suit, filed in federal court in Seattle, covers investors who purchased Dendeon stock between April 29, 2010 and August 3, 2011.