Pacira BioSciences faces class action lawsuit after patent loss
- A class action lawsuit was filed against Pacira BioSciences involving investors who purchased its securities during a specific timeframe.
- The lawsuit is based on allegations that Pacira failed to disclose crucial information regarding the patent protections of its product Exparel.
- The outcome could potentially lead to significant financial losses for the company and its shareholders.
On January 14, 2025, Robbins LLP announced that a class action lawsuit has been filed against Pacira BioSciences, Inc., a biotechnology company based in the United States, on behalf of individuals and entities who purchased its securities during a specified period from August 2, 2023, to August 8, 2024. This legal action stems from allegations that the company misled investors regarding its patent protections for Exparel, a critical product that constituted about 80% of its revenue. Investors became aware of potential issues when the New Jersey District Court ruled against Pacira in favor of eVenus Pharmaceuticals in June 2023, which indicated that Pacira's '495 patent was not as robust as the company claimed. Despite this ruling, Pacira continued to publicly express optimism regarding its patent protections, leading to heightened investor confidence. However, on August 9, 2024, after losing a second lawsuit against eVenus concerning the same patent, the value of Pacira's stock plummeted by over 47%. This dramatic decline prompted shareholders to consider legal action, resulting in Robbins LLP stepping in to inform and assist affected investors. The situation has raised questions about corporate governance at Pacira and the accountability of its executives in providing accurate and timely information to shareholders. The deadline for investors who wish to apply as lead plaintiffs in the class action is set for March 14, 2025, allowing them a chance to take an active role in the proceedings while those who choose not to participate can remain absent class members without relinquishing their rights to potential recoveries.