XML 31 R16.htm IDEA: XBRL DOCUMENT v2.4.0.6
Legal Proceedings
3 Months Ended
Mar. 31, 2012
LEGAL PROCEEDINGS [Abstract]  
Legal Matters and Contingencies [Text Block]
LEGAL PROCEEDINGS:
Claims and lawsuits are filed against the Company from time to time.  Although the results of pending claims are always uncertain, the Company believes that it has adequate reserves or adequate insurance coverage in respect of these claims, but no assurance can be given as to the sufficiency of such reserves or insurance coverage in the event of any unfavorable outcome resulting from these actions.
Between February 1, 2012 and February 6, 2012, two putative securities class action complaints were filed against the Company, three of its officers, and two of its independent directors in the United States District Court for the District of New Jersey.  These actions were filed under the captions Wright v. Columbia Laboratories, Inc., et al., and Shu v. Columbia Laboratories, Inc., et al., and assert claims under sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated under the Securities Exchange Act of 1934 on behalf of an alleged class of purchasers of the Company's Common Stock during the period from December 6, 2010 through January 20, 2012. The complaints allege that the Company and its certain of its officers and directors omitted to state material facts that they were under a duty to disclose, and made materially false and misleading statements that related to the results of the Company's PREGNANT study and the likelihood of approval by the FDA of an NDA to market progesterone vaginal gel 8% for the prevention of preterm birth in women with premature cervical shortening. According to the complaints, these alleged omissions and misleading statements had the effect of artificially inflating the market price of the Common Stock. The plaintiffs seek unspecified damages on behalf of the putative class and an award of costs and expenses, including attorney's fees. The Company believes that these actions are without merit, and intends to defend them vigorously. At this time it is not possible to determine the likely outcome of, or estimate the liability related to, this action and the Company has not made any provision for losses in connection with it.