CRA assesses pharmaceutical investor claims in Delaware Chancery Court

In a matter before the Delaware Chancery Court, CRA was retained on behalf of a pharmaceutical company facing an investor suit alleging breach of fiduciary duty, fraud, unjust enrichment, and other claims. Investors alleged that the drug company and related parties engaged in a complex series of agreements to misappropriate drug rights and divert proceeds from licensing deals from the drug company itself in self-dealing transactions. CRA’s financial analysis and testimony assessed the adequacy of financial disclosures and evaluated the licensing agreements at issue in the dispute. In reaching an opinion, CRA’s expert identified the variety of sources with financial information available to the plaintiffs, which included identifying information ignored or mischaracterized by plaintiffs’ expert. CRA’s expert also evaluated the license agreements that were alleged to represent improper maneuvering to demonstrate that there was reasonable commercial value to those agreements and that the plaintiff was not disproportionately affected by the terms of those agreements.