June 10, 2020 / 10:29 PM / 21 days ago

9th Circuit rejects stock-drop claims against device withdrawn from FDA approval

A federal appeals court has affirmed the dismissal of a proposed class action lawsuit accusing medical device maker Endologix Inc and its executives of concealing serious problems with its Nellix aneurysm sealing device from investors, resulting in a sharp stock drop when it revealed the product would not receive FDA approval.

Circuit Judge Daniel Bress, writing for a three-judge panel of the 9th U.S. Circuit Court of Appeals, said the claim that the company would promote the product despite knowing it would not be approved had “no basis in logic or common experience.”

To read the full story on Westlaw Practitioner Insights, click here: bit.ly/2BUR7Vc

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