Biotechnology Firm 10b-5 Matter -- Human Testing
In this matter, our client, a biotechnology company, was sued for alleged violations of Section 10b-5. The plaintiffs alleged that our client withheld information on the likelihood of FDA approval of a prospective treatment for a lipid storage disorder, which was undergoing human testing in clinical trials. Our team analyzed comparable clinical trial test results to show that the stock price drop was not dispositive of failure to receive FDA approval. The case settled favorably for the defendant.