Bessler v. Zafgen

After a patient death in ongoing clinical trials, shareholders in an early-stage biopharmaceutical company filed a putative securities class action claiming that the company had made material misstatements about the health risks of its product. Goodwin represented both named defendants: the company and its chief executive officer. After the district court dismissed the case, the First Circuit affirmed, holding that the allegations in the complaint came nowhere close to satisfying the Private Securities Litigation Reform Act’s (PSLRA) scienter requirement, under which plaintiffs must plead allegations giving rise to a strong inference of intent to defraud or, at least, extreme recklessness.

Bessler v. Zafgen

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