Shareholder's Securities Suit Against Nautilus Tossed

Law360, New York (June 19, 2013, 6:00 PM EDT) -- A Delaware federal judge Wednesday tossed a shareholder's suit against Nautilus Neurosciences Inc. leaders and its private equity backers alleging they breached fiduciary duties and wrongfully diluted the pharmaceutical company's value, finding that the claims were derivative and weren't properly addressed to the company's board before filed.

Nautilus founder Jim Fares claimed that the company's controlling shareholder, Tailwind Investor, had diluted the value of his shares and that this had a direct adverse affect on him, according to Wednesday's order. U.S. District Judge Sue L. Robinson,...
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