Securities Class Action Settlement for Misleading Investors (high) Emergent BioSolutions Inc. (EBS) agreed to pay a **$40 million** class action settlement to resolve claims that it misled investors about the capabilities and readiness of its Bayview facility to manufacture COVID-19 vaccines. The lawsuit covered stock purchases made between March 10, 2020, and November 4, 2021. The settlement received final court approval in late February 2025.. Destruction of 400 Million Vaccine Doses Due to Contamination (critical) A Congressional report (May 2022) revealed that Emergent's manufacturing failures and quality control issues at its Bayview facility led to the destruction of vaccine materials equivalent to nearly **400 million doses** (out of 500 million produced). The failures included cross-contamination of Johnson & Johnson doses with AstraZeneca ingredients (March 2021) and persistent problems with mold, poor disinfection, and inadequate employee training dating back to 2020.. SEC Cease and Desist Order for Securities Violation (high) Emergent BioSolutions Inc. (Respondent Emergent) was subject to an SEC enforcement action requiring it to 'cease and desist from committing or causing any violations and any future violations of Section 17(a)(2) of the Securities Act.' Section 17(a)(2) relates to obtaining money or property by means of untrue statements or omissions of material fact in the offer or sale of securities.. Former CEO Stock Sales Preceding Crisis Disclosure (high) Former CEO Robert Kramer completed stock transactions netting him over **$7.6 million** (or $11 million, per Pomerantz) between January 15 and February 8, 2021. This occurred shortly before the company publicly acknowledged the contamination crisis and manufacturing failures, leading to accusations of pandemic profiteering and calls for an SEC investigation.. Termination and Settlement of J&J Contract (medium) Johnson & Johnson (J&J) agreed to pay Emergent BioSolutions $50 million (July 2024) to settle claims related to the termination of their COVID-19 vaccine supply deal. The contract termination followed Emergent's high-profile manufacturing errors and contamination issues at the Baltimore plant in 2021.