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Contingencies
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3 Months Ended |
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Mar. 31, 2013
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| Contingencies | |
| Contingencies |
12. Contingencies
On February 6, 2009, a purported securities class action lawsuit was commenced in the United States District Court for the Northern District of California, naming as defendants us and certain of our officers, directors and underwriters for our February 2008 public offering of common stock. The lawsuit alleged violations of the Securities Act of 1933, as amended (Securities Act) and the Securities Exchange Act of 1934, as amended (Exchange Act) in connection with allegedly false and misleading statements made by us related to the results of the Phase 2a clinical trial of our product candidate, fostamatinib. On November 5, 2012, the Ninth Circuit Court of Appeals entered judgment in our favor. The plaintiff had until January 23, 2013 to seek a writ of certiorari from the United States Supreme Court, but did not do so. We did not record any amounts for this potential liability as the case was dismissed and the plaintiff has not further pursued this matter.
We may be subject to similar claims in the future. Lawsuits are subject to inherent uncertainties, and the actual costs to be incurred relating to such lawsuits will depend upon many unknown factors. The outcome of litigation is necessarily uncertain, and we could be forced to expend significant resources in the defense of such suits, and we may not prevail. Monitoring and defending against legal actions is time-consuming for our management and detracts from our ability to fully focus our internal resources on our business activities. In addition, we may incur substantial legal fees and costs in connection with any such litigation. We may be required to establish reserves for any potential liability relating to any such potential lawsuits. It is possible that we could, in the future, incur judgments or enter into settlements of claims for monetary damages. A decision adverse to our interests on any such actions could result in the payment of substantial damages, or possibly fines, and could have a material adverse effect on our cash flow, results of operations and financial position. |