Federal Courtís Dismisses Class Action Law Suits Against Discovery Labs
WARRINGTON, Pa. - The United States District Court for the Eastern District of Pennsylvania, granted the Discovery Laboratories, Inc. Motion to Dismiss on the Second Consolidated Amended Complaint that was filed against the Company and two of its executive officers in November.
The Second Consolidated Amended Complaint, like the first consolidated complaint that was filed in August and dismissed, without prejudice alleged violations of Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act), Rule 10b-5 and Section 20(a) of the Exchange Act in connection with various public statements made by the Company. The Company has no information as to whether the plaintiffs plan to file an appeal.
In addition, the Court issued an order in the derivative action against the Company and several of its officers and directors, in which the plaintiffs filed a consolidated amended complaint in December and the defendants filed a motion to dismiss in January. The Court directed that, as the derivative action complaint is largely based on the assumption that various statements made by the Company subjected it to potential liability under the federal securities laws and the Courtís March 15 opinion in the class action held that the vast majority of the statements referenced in the derivative plaintiffsí complaint are not actionable under federal law, plaintiffs should file a supplemental brief explaining why the Courtís March 15 decision in the class action does not require dismissal of the derivative complaint as well, and defendants should file a response.
This news content was configured by WebWire editorial staff. Linking is permitted.
News Release Distribution and Press Release Distribution Services Provided by WebWire.