NEW YORK (360Dx) – Two class action lawsuits have been filed on behalf of Meridian Bioscience shareholders stemming from the recalls of lead poisoning tests and test systems by the company's Magellan Diagnostics subsidiary.
The class action suits were filed by Rosen Law Firm and by the Klein Law Firm on Monday on behalf of purchasers of Meridian Bioscience securities between March 25, 2016 and July 13, 2017. Both suits allege that the defendants provided false or misleading statements related to lead test results that were inaccurate, and they seek to recover damages suffered by investors.
Magellan Diagnostics announced in May 2017 that it was recalling lead poisoning tests and test system due to inaccurate test results, following a warning from the US Food and Drug Administration.
Earlier that month, the FDA and the Centers for Disease Control and Prevention recommended retesting people who were tested for lead levels with Magellan's products, after data suggested inaccurate results from tests performed on blood drawn from a vein. The FDA and CDC both reported that data indicated results from tests might have been lower than the actual level of lead in the blood. Samples from finger pricks and heel sticks were not affected.
In October, the FDA issued a warning letter to Magellan Diagnostics alleging several violations of federal law, including marketing "significantly modified versions" of two blood-based lead testing systems without the FDA's required clearance or approval.
Both law firms said that shareholders have until January 16, 2018 to petition the court if they want to serve as lead plaintiff. Shareholders who do not petition the court may remain as absent class members and would still share in the recovery.
The suit filed by Klein was filed in the US District Court for the Southern District of Oho, according to the firm's statement. It was not clear in which court Rosen Law Firm filed its suit.
Attorneys at the firms did not return calls or emails.
In afternoon trading on the Nasdaq, Meridian's shares were up more than 1 percent to $14.30.