Lead Plaintiffs’ Scienter Allegations Fail Under Tellabs Standard, Panel Rules

Mealey's (May 29, 2020, 1:50 PM EDT) -- RICHMOND, Va. — A federal district court did not err in ruling that lead plaintiffs in a securities class action against a biopharmaceutical company and three of its executive officers failed to plead scienter in alleging that the defendants violated federal securities law by failing to properly disclose safety issues with the company’s community-acquired bacterial pneumonia (CABP) treatment drug, a Fourth Circuit U.S. Court of Appeals panel ruled May 28 (Charles C. Janies, et al. v. Cempra Inc., et al., No. 18-2415, 4th Cir., 2020 U.S. App. LEXIS 16978)....