United States Ninth Circuit

In a putative securities class action in connection with defendants' public statements about their weight-loss drug, lorcaserin, the District Court's dismissal is reversed where: 1) a strong inference of scienter was properly pleaded under Federal Rule of Civil Procedure 9(b) and the Private Securities Litigation Reform Act because when the defendants touted the safety and likely FDA approval of lorcaserin, they referred to animal studies supporting their FDA application; and 2) once they raised the animal studies, they were obligated to disclose the cancer studies on rats.

Appellate Information

• Published 2016/10/26

Judges

• BYBEE

Court

• United States Ninth Circuit

Counsel