Insufficiently Pleaded Claims In Stock-Drop Suit Against Drug Maker Dismissed

Mealey's (January 30, 2020, 1:53 PM EST) -- SAN FRANCISCO — A federal judge in California on Jan. 27 ruled that an investor has failed to properly plead falsity or scienter in arguing that a drug company and two of its senior executives violated federal securities law by failing to disclose to investors that they had omitted in a new drug application (NDA) key toxicity information for an active ingredient in a childhood-onset epilepsy treatment drug, which ultimately led the U.S. Food and Drug Administration to deny the NDA (Immanuel Lake, et al. v. Zogenix Inc., et al., No. 19-1975, N.D. Calif.)....