Westlaw Topical Highlights: Securities, March 19, 2015

March 19, 2015

To match analysis CHINA-IPO/Topical Highlights for Securities provides summaries of significant federal and state judicial decisions and legislative and administrative activities affecting Securities law. A Westlaw subscription is required to access the documents linked from this page.

Fraud: Omission of FDA’s concerns about clinical trial design did not make public statements about new drug false and misleading.  In re Sanofi Securities Litigation, 2015 WL 365702 (S.D.N.Y.)

Investors failed to state a securities fraud claim against a pharmaceutical company and its executives based on their failure to disclose the Food and Drug Administration’s (FDA) concerns about the single-blind design used in the clinical trials for a new multiple sclerosis drug. A federal district court noted that detailed descriptions of the trials’ design and the FDA’s preference for double-blind studies were publicly available. In addition, while the FDA’s concerns indicated that the company would need to overcome a higher burden in obtaining approval, they did not indicate that the drug would necessarily be rejected. 2015 WL 365702 (The full-text of the rest of the Topical Highlights is available within Westlaw Next, subscription required).

Whistleblowers: SEC’s determination that information provided before Dodd–Frank could not form basis for whistleblower award was reasonable.  Stryker v. S.E.C. 2015 WL 1036082 (C.A.2)

Fraud: Integration clauses in subscription agreement did not bar claims for fraudulent sale of securities.  DMK Biodiesel, LLC v. McCoy 2015 WL 1004843 (Neb.)