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Paul, Weiss Obtains Dismissal of Putative Securities Class Action for Pharmaceutical Client

Judge P. Kevin Castel dismissed with prejudice a securities fraud putative class action brought in the Southern District of New York under Sections 10(b) and 20(a) of the Securities Exchange Act against Paul, Weiss client Aeterna Zentaris, Inc., a Canadian/German company that develops oncological and other drugs, and its senior officers. Plaintiff claimed that Defendants made material misrepresentations and omissions concerning Phase 2 and 3 clinical trials, conducted by Aeterna's partner Keryx Biopharmaceuticals, of Aeterna's potential anti-cancer drug, perifosine. The court agreed with our arguments that Plaintiff's claims that Defendants manipulated the Phase 2 trial and protocol amounted to disagreements with Defendants' chosen scientific and statistical methodology and did not plead fraud. The court also agreed that Defendant did not make a material misrepresentation or omission regarding the timing of the release of the results of the Phase 3 trial. Finally, the court agreed that Plaintiff failed adequately to plead scienter. Given prior opportunities to amend, the court held that no further amendments would be granted.

The Paul, Weiss team included litigation partners Daniel Kramer and Moses Silverman and counsel Robert Kravitz.

May 29, 2013

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