Pharma Drama: bluebird bio, Inc. Directors Accused of “Grossly Excessive” Compensation While separate Errant Gene Therapeutics Lawsuit Heads for Trial

Gene Therapeutics Lawsuit

In new twists on a convoluted tale of medicine and money, a
shareholder lawsuit against bluebird bio, Inc.’s (formerly Genetix) directors
is accusing them of overpaying themselves, as other litigation moves forward.
bluebird bio has been featured on our site in the past; a good overview of the
ongoing battle of Errant Gene Therapeutics (EGT) versus bluebird bio, capital
firm Third Rock Ventures, and the Memorial Sloan Kettering center (MSK) can be
found here. Other
news about bluebird partnering with Novo-Nordisk is
here. The bluebird-MSK litigation accuses both of
essentially slow walking and trying to “kill” EGT’s allegedly superior gene
vector product.

Too Much or Just How it is?

In the new case, filed in Delaware state court on March 20, 2020,
a shareholder alleges that bluebird’s eight directors, including Chairman
Daniel Lynch, have been grossly overpaid for several years. According to the
suit, the 2018 average compensation for board members was $748,652, and the
average for other mid-cap firms with similar value was about one-third of this
amount. The suit includes causes of action for breach of fiduciary duty, unjust
enrichment, and wasting corporate assets. The sui...

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