As reported in a May 29, 2024, Bloomberg Law article titled “Athenex Officers Beat Investors’ Fraud Claims for FDA Drug Trial, "Partners Doug Greene and Genevieve York-Erwin led a team that defended Athenex Inc. and certain of its officers against claims by investors stating the company misled them about the likelihood of the U.S. FDA approving the company’s lead drug candidate—an oral chemotherapy treatment for metastatic breast cancer. On March 1, 2021, Athenex announced that, despite its high hopes, the FDA had issued a Complete Response Letter denying its new drug application, and the company’s stock price dropped from $12.10 to $5.46 over a three-day period.
Investors filed suit shortly thereafter in the Western District of New York, asserting securities fraud claims under Sections 10(b) and 20(a) of the Securities Exchange Act on behalf of a putative class. Defendants moved to dismiss all claims. While that motion to dismiss was pending, Athenex filed for bankruptcy, and the case was stayed as against the company but proceeded against the individual defendants. In September 2023, Magistrate Judge H. Kenneth Schroeder, Jr., recommended that the claims against individual defendants be dismissed, and on May 28, 2024, District Judge Lawrence J. Vilardo adopted that recommendation and dismissed all claims against the individual defendants with prejudice.
Assisting on the case were Associates Zachary Taylor and Alexandra Karambelas.
Read the Bloomberg article. (subscription required)