Judge Bounces Derivative Suit Against Cell Therapeutics

Law360, New York (September 12, 2006, 12:00 AM EDT) -- Months after tossing out a private class action against Cell Therapeutics Inc., a federal judge has dismissed a derivative lawsuit accusing the Seattle biopharmaceutical’s directors of making false statements regarding the success of its lung cancer drug XYOTAX.

U.S. District Judge Ricardo Martinez recently threw out the derivative lawsuit and barred the plaintiffs from reinstating the complaint, according to CTI.

The suit, filed in May 2005 in the U.S. District Court for the Western District of Washington, accused the company’s executives of breaching their duty and...
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