Recro Pharma Will Pay $1.4 Million Under Shareholder Settlement

Recro Pharma Inc. received final approval of a $1.4 million settlement to resolve a shareholder class action, which alleged its stock plunged more than 50% after informing its investors that the FDA declined to approve its experimental analgesic drug ‘meloxicam’ for sale and marketing in the U.S.

Although the settlement amount is small compared to the plaintiffs’ “forecasted” damages of $34 million, it is reasonable given weaknesses in the plaintiffs’ case, Judge Michael M. Baylson of the US District Court for the Eastern District of Pennsylvania said Thursday in a final order approving the agreement.

“Plaintiff’s counsel explained that they ...