Evanston biotech firm settles fraud case
Submitted by Bill Smith on Tuesday, July 10, 2012, at 12:46 pm
Evanston biotech firm Northfield Laboratories reportedly has settled a securities fraud case against it -- three years after it went out of business.
Crain's Chicago Business reports the settlement, for $1.5 million resolves charges from disgruntled shareholders that the company lied about why it closed a clinical trial of its red blood cell substitute PolyHeme.
PolyHeme was touted as a major advance for emergency medicine, because it supposedly could work with all blood types.
But the FDA concluded in May 2009 that PolyHeme increased risks to patients, and the company filed for bankrupcty protection a month later.
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