DLA Piper represented biopharmaceutical company Immunomedics Inc. in the dismissal of a securities class action lawsuit filed in the US District Court for the District of New Jersey, which alleged the company misrepresented its plans to participate in the annual conference of the American Society of Clinical Oncologists in order to drive up the company’s stock price and find a licensing partner for its flagship cancer drug candidate.
The suit claimed Immunomedics made the false or misleading statements in a series of press releases issued in 2016. The company ultimately did not fully participate in the conference as anticipated, and the plaintiffs alleged that stock prices dropped as a result.
DLA Piper filed a motion to dismiss the suit in January 2018, which the court granted on March 31, 2019, ruling that the complaint alleged no facts demonstrating that the statements were false at the time they were made.
The New Jersey Superior Court also granted a motion to dismiss without prejudice a stockholder derivative action alleging the same facts in March 2018.
The DLA Piper team representing Immunomedics included partner John Pendleton and associate Kristin Pacio (both of Short Hills).