Judge:  Defendants In Stock-Drop Suit Had Duty To Disclose Product Recalls

Mealey's (February 6, 2020, 2:02 PM EST) -- SAN FRANCISCO — A federal judge in California on Feb. 4 ruled that investors have sufficiently shown that current and former top executives of a manufacturer of algae-based food, nutrition and specialty ingredients products violated federal securities law by failing to disclose to shareholders that two companies that used the manufacturer’s product were forced to recall certain products they produced after customers reported suffering from violent gastrointestinal issues (In re TerraVia Holdings Inc. Securities Litigation, No. 16-6633, N.D. Calif., 2020 U.S. Dist. LEXIS 19211)....