Judge Gives Biotech Co. Shareholders 2nd Chance

Law360, New York (July 15, 2008, 12:00 AM EDT) -- A federal judge has thrown out a proposed shareholder class action against Threshold Pharmaceuticals Inc. and two of its top executives for lack of detail, but has given the plaintiffs 45 days to fill the gaps in their complaint.

U.S. District Judge Claudia Wilken of the Northern District of California granted Threshold's motion to dismiss the already amended suit on Friday, saying allegations the biotech company misled investors ahead of an initial public offering could not be construed as negligence.

“Reports in prospectuses and registration statements...
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