Judge Tosses Case For Failure To Prove Scienter

Law360, New York (April 4, 2007, 12:00 AM EDT) -- In a case with big implications for small companies, a judge has thrown out a suit filed against a small biopharmaceutical company, ruling that a company’s failure to meet its revenue projections does not mean that a fraud has occurred.

Judge George O’Toole of the U.S. District Court for the District of Massachusetts ruled that plaintiffs failed to prove that the underperformance of Praecis Pharmaceuticals’ stock was linked to material omissions or misrepresentations by the company.

“While history ultimately proved Praecis’ estimated ‘revenue opportunity’ to be...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.