VaxGen is a publicly held biopharmaceutical company with annual revenues of approx. $14 million. With news of making "false or misleading statements" about their anthrax vaccine product, they may face securities fraud complaints from their shareholders.
VaxGen has a $1 billion contract with the federal government to create 75 million doses of its vaccine to stop the spread of anthrax, a bacteria that can lead to fatal lung infection. Anthrax has been used as a bioweapon for over fifty years and can lead to fatal lung infection, gastrointestinal infection, and skin lesions in humans. In order to be effective, the vaccine must be given at least four weeks prior to any anthrax exposure and annual vaccinations may also be required.
VaxGen Securities Fraud in the NewsVaxGen has been creating an anthrax vaccine for Bush's Project BioShield but is criticized by the FDA for making unwarranted claims about the drug. (Apr-05-06) [WASHINGTON POST]
In 2003, Johnson and Johnson filed a class action lawsuit against VaxGen for violations of the Securities Exchange Act. In this complaint, VaxGen was accused of making statements about the positive clinical trial results of its HIV vaccine to prompt FDA approval and inflate stock prices. (Mar-24-03) [BUSINESS WIRE]