Scant Scienter Allegations Do Not Support Investor Claims In Stock-Drop Suit

Mealey's (December 9, 2021, 1:13 PM EST) -- NEW YORK — A Second Circuit U.S. Court of Appeals panel on Dec. 7 affirmed a federal district court’s dismissal of federal securities law claims in a shareholder class action against a drug company and others over their alleged failure to disclose U.S. Food and Drug Administration concerns pertaining to the clinical study program used to test the efficacy of the company’s depression and cocaine dependence treatment product because the lead plaintiff in the action failed to sufficiently plead scienter in making its federal securities law claims....