Jason Mehta Weighs in on SEC Settlements, Clinical Research Fraud

Foley & Lardner LLP partner Jason Mehta commented on a recent health care litigation settlement with the U.S. Securities and Exchange Commission in the Clinical Trials Arena article, “Cassava Sciences: Phase III trials storm ahead amid controversy.”

Mehta, who co-chairs of Foley’s Health Care litigation team, noted that this instance is relatively standard for how cases like these are settled, adding the both the SEC and U.S. Department of Justice have shifted attention to potential clinical research fraud.

“Oftentimes companies are accused of fabrication or embellishing research findings and pay large settlements,” Mehta explained. “It is common practice in the industry that when civil cases are resolved, they are resolved without any finding of admission or of liability.”

“In cases like this where there are allegations and a certain degree of proof that certain individuals have engaged in wrongdoing, the only way for a company like Cassava to move forward is to cleanse itself of those alleged to have engaged in this,” he added. “In some respects, it’s a standard playbook for companies to extricate themselves of the past bad actors. It can sometimes be the only way to turn the page and to move to the next step forward in these clinical trials.”