9th Circ. Rules Endologix Stock Suit ‘Had No Basis In Logic’
Law360 (June 10, 2020, 8:31 PM EDT) — The Ninth Circuit said in a published opinion Wednesday that a proposed class action accusing Endologix Inc. of misleading investors about regulatory approval for a new medical product “had no basis in logic or common experience.”
An appellate panel affirmed a California federal judge’s 2018 decision to dismiss the stock-drop lawsuit accusing the medical device company of misrepresenting the likelihood that the U.S. Food and Drug Administration would approve its new aneurysm sealing product Nellix, ultimately leading to stock price plunges.
Like the lower court, the appellate judges found it more likely based on the allegations that Endologix had been optimistic…