Synergen Securities Fraud Class Action
Kim D. Stephens of TBS was appointed lead counsel in this class action litigation against the world’s leading biopharmaceutical company. The Class consisted of limited partners in Synergen Clinical Partners, L.P. (“SCP”), a partnership formed to fund the development and clinical trials of products derived from interleukin-1 receptor antagonist (“IL-1ra”), a genetically engineered version of a natural protein.
In 1998, the parties reached a settlement that provided for an immediate payment of approximately $13.8 million to eligible Class members. The settlement required Amgen to pay another $9 million to the Class if the FDA approved an IL-1ra product for market. On November 14, 2001, the FDA approved Amgen’s application for Kineret, an IL-1ra product used to treat rheumatoid arthritis. TBS distributed the second payment to eligible members of the Class in February 2002. Amgen was further obligated to pay another $50 million to the Class if sales from any IL-1ra product exceeded $650 million before December 30, 2020. On February 27, 2013 Amgen notified class counsel that the revenue threshold had been reached, and TBS subsequently distributed this final settlement payment to the Class.
The total settlement for all eligible Class members was $82 million, including payments to TBS for attorneys’ fees and costs. Amgen has fulfilled all of its obligations under the settlement, including payment of all sums due.