Replies to post #184891 on Avid Bioservices Inc (CDMO)

[MazelMan]

Bcs can you please elaborate I'm not attorney driven. Thanks.

[biopharm]

The decision should be taken as a

major victory for PPHM.

Now with Peregrine already basically saying it was fraud and the judge not limiting the exposure to CSM if fraud is proven... CSM's insurance company must be forced to do things they don't often do. Pay up quicker than they expected and settle...and I hope the judge makes an example out of this case in particular and reminds all other CRO's what could happen if they get caught...

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Limiting Liability in Clinical Trials: Non-Lawyers, Lawyers Beware by Beni Surpin, Blaine E. Templeman & Michael Murphy

Clinical trials are the lifeblood of biotech. Finding the right service providers (CROs, safety, IVRS, consultants, contract manufacturers and many others), as well as the right clinical investigators and sites, results in a complex web of legal obligations and potential liabilities. Limitation of liability clauses can reduce a party's exposure if a contractual obligation is breached. More often, limitations of liability provisions are used to shift risk to the sponsor of the clinical trial. But, if your contracts are well negotiated and drafted, the risks can be carefully and fairly allocated between the parties in a balanced and reasonable manner. Because of the complexity of the legal relationships and liabilities found in clinical trials, this article is limited to a brief description of limitation of liability clauses, and their general strengths and weaknesses.

http://www.jdsupra.com/legalnews/limiting-liability-in-clinical-trials-n-74504/

[skweze]

Good question. I wonder what amount of insurance they carry. Also, could the carrier try to dodge based on fraudulent or illegal conduct?

The decision should be taken as a

major victory for PPHM.

Now the question is will the E&O Carrier for CSM

try to dodge exposure with denying coverage for uncapped exposures.