Smaller biopharma companies face more securities fraud lawsuits than ever before

The number of class-action lawsuits claiming securities fraud committed by life sciences companies climbed again last year, continuing a trend in which drug and device makers remain juicy targets for investors, according to a new analysis.

A total of 88 class action securities lawsuits were filed against life sciences companies in 2017, a 31 percent rise from the 67 lawsuits filed the year before and a 225 percent increase from 27 such lawsuits filed in 2012, according to the Dechert law firm, which conducted the latest analysis.

In general, the total number of securities fraud class action lawsuits filed last year spiked, reaching 412, up from 270 filed in 2016. Although lawsuits filed against drug and device makers dropped as a percentage of all such claims filed against companies across all industries, more than one out of every five securities fraud class action lawsuits was brought against a life sciences company.

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