In Patel v. Seattle Genetics, Inc., No. C17-41RSM, 2017 BL 373924 (W.D. Wash. Oct. 18, 2017), the court granted biopharma company Seattle Genetics’ and three of its executives’ (collectively “Defendants”) motion to dismiss Carl Johnson’s, the lead plaintiff of an investor group (collectively “Plaintiffs”), Consolidated Amended Complaint (“CAC”) for failure to state a claim. Although Plaintiffs satisfied the misrepresentation element of the 10b claim in their complaint, the court held they failed to demonstrate scienter or underlying securities fraud by Defendants, and therefore dismissed Plaintiffs’ claims under SEC Rule 10b-5 and Section 20(a) of the Securities Exchange Act.
Read MoreIn Markette v. XOMA Corp., No. 15-cv-034250HSG, 2017 BL 345015 (N.D. Cal. Sept. 28, 2017), the United States District Court for the Northern District of California granted XOMA Corp.’s (“Defendant” or “XOMA”) motion to dismiss Joseph Markette’s (“Plaintiff”) class action complaint alleging violations for Sections 10(b) and 20(a) of the Securities Exchange Act (“Exchange Act”). The court held the Plaintiff failed to meet the heightened pleading standards under the Private Securities Litigation Reform Act (“PSLRA”).
Plaintiff brought a putative class action on behalf of anyone who purchased XOMA common stock between November 6, 2014 and July 21, 2015.
Read MoreIn Princeton Ophthalmic, LLC v. Corinthian Ophthalmic, Inc., No. 14-cv-05485 (PGS), 2017 BL 364534 (D.N.J. Oct. 10, 2017), the United States District Court for the District of New Jersey denied both Princeton Ophthalmic (“Plaintiff’s”) partial motion for summary judgment as to the first and third elements of section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10(b)(5) promulgated thereunder and Corinthian Ophthalmic, board members Drs. Ianchulev and Packer, and Corinthian CEO Mr. Ballou’s (“Defendant’s”) motion for summary judgment on Plaintiffs entire securities fraud complaint. The court denied the motions on the grounds there were genuine disputes of material facts concerning the Defendants’ misrepresentation of or lack of disclosure of the engineering capabilities of its ocular drug delivery device, the WHISPER.
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