Genzyme Beats Investor Suit Over Stock Plunge

Law360, Los Angeles (April 2, 2012, 9:43 PM EDT) -- A federal judge dismissed a consolidated class action Friday accusing Genzyme Corp. of misleading the U.S. Food and Drug Administration and selling its securities at artificially inflated prices, saying alleged misstatements to the FDA weren't enough to show Genzyme intended to deceive investors.

U.S. District Judge George A. O'Toole Jr. said the lawsuit failed to substantiate a securities fraud claim because it didn't satisfy the necessary scienter prong, which requires it to show Genzyme executives intended to deceive, manipulate or defraud the proposed class of investors....
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