Novartis Cancer Unit Escapes Securities Suit

Law360, New York (July 13, 2012, 1:08 PM ET) -- A California federal judge on Wednesday dismissed a proposed securities class action accusing Novartis AG subsidiary Genoptix Inc.'s executives of feathering their nests with company cash as sales figures tanked, ruling the firm's inaccurate revenue forecasts were forward-looking statements immune to litigation.

Investors spotlighted 80 allegedly deceptive statements by Genoptix’s top brass, but more than half were protected under the Private Securities Litigation Act’s safe-harbor provisions, U.S. District Judge Cathy Ann Bencivengo said.

Shareholders had argued that company leaders failed to make it clear that actual...
To view the full article, take a free trial now.
Try Law360 for free for seven days
Already a subscriber? Click here to login

Already have access?

  1. Forgot your password?
  2. Sign In

Get instant access to the one-stop news source for business lawyers

Required