As the legal industry constantly evolves, it encounters multifaceted cases involving innovative technologies or, as frequently, novel medical treatments. A salient example of this is the ongoing multi-district litigation (MDL) concerning Tepezza (teprotumumab-trbw) – a groundbreaking medication developed by Horizon Therapeutics for the treatment of Thyroid Eye Disease. [1]
Horizon Therapeutics came under legal fire for its choice to suspend Tepezza distribution to new patients. The company attributed the decision to Operation Warp Speed (the U.S. Federal Government’s COVID-19 vaccine manufacturing and distribution endeavor), which had prioritized the manufacturing of COVID-19 vaccines in Pfizer’s manufacturing facility. The facility was a crucial part of the Tepezza production line. [2]
However, the fallout from this decision has been the subject of several lawsuits, leading to complex, multi-district litigation that bears exploration.
Understanding Multi-District Litigation
Before delving into the intricacies of the Tepezza litigation, it’s crucial to understand what makes multi-district litigation (MDL) distinct. Essentially, MDL is a process that consolidates multiple civil cases from different districts into one court. Judge Matthew Kennelly ruled on this centralized litigation concerning Tepezza in the Northern District of Illinois. [3]
The Root of the Lawsuit
The parties suing Horizon Therapeutics argue that the company misled investors regarding Tepezza. They claim Horizon failed to disclose that it would, in fact, be able to continue producing Tepezza despite Pfizer repurposing its facility for COVID vaccine manufacture. They argue Horizon misrepresented the situation to manipulate its stock prices. [3]:
The Lawsuit’s Implications
The future implications of this lawsuit depend on its outcome. If it goes in favor of the plaintiffs, it could set a precedent for other pharmaceutical companies about the level of transparency required when disclosing information that can affect stock prices. Moreover, it would pave an avenue for compensation to those affected.
If Horizon wins, it may send a message that these companies have considerable discretion in decision-making and communication. However, such an outcome could also lead to public and legal pressure for more stringent regulations on pharmaceutical industry disclosures.
Conclusion
The case of the Tepezza MDL illustrates the complexity that can arise when the medical and legal fields intersect, particularly in an era impacted by a global pandemic. This case underscores the importance of proper investment information disclosure by pharmaceutical companies and the potential legal repercussions when this standard is not met.
If you or a loved one has been injured by Tepezza, give us a call at the Michael Brady Lynch Firm at 888-585-5970.
Date: June 30, 2023
Author: Brandon Salter and Anoop Desai
Citations
[1] https://www.fda.gov/news-events/press-announcements/fda-approves-first-treatment-thyroid-eye-disease
[2] https://ir.horizontherapeutics.com/news-releases/news-release-details/horizon-therapeutics-plc-announces-fda-approval-update#:~:text=14%2C%202023%2D%2D%20Horizon%20Therapeutics,Eye%20Disease%20activity%20or%20duration.%E2%80%9D
[3] https://www.jpml.uscourts.gov/sites/jpml/files/MDL-3079-Transfer_Order-5-23.pdf