Novelos Shakes Class Action Over Cancer Drug Statements

Law360, Wilmington (June 24, 2011, 2:39 PM EDT) -- A Massachusetts federal judge on Thursday tossed a securities class action against Novelos Therapeutics Inc., ruling that the pharmaceutical company’s CEO did not mislead investors about the prospects of a developmental-stage cancer drug.

U.S. District Judge Nathaniel M. Gorton issued an order dismissing the suit without prejudice, finding that statements Novelos CEO Harry S. Palmin made to the press regarding a clinical trial for lung cancer drug NOV-002 lacked intent to deceive, and that plaintiffs’ assertions to the contrary were based on an incomplete quote in...
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