Paul, Weiss is widely recognized as having one of the nation’s preeminent securities litigation and regulatory practices. For two decades, our lawyers have guided global corporations and financial institutions through a series of “bet-the-company” securities-related crises, consistently reducing or eliminating their most damaging claims and negotiating favorable resolutions.
Shareholders Drop Class Action Against Intra-Cellular Therapies
- Client News
- September 20, 2017
Paul, Weiss successfully defended pharmaceutical company Intra-Cellular Therapies, Inc. and individual officers of the company in a securities class action filed in the Eastern District of New York. Shareholders’ counsel voluntarily agreed to dismiss the complaint.
Intra-Cellular’s principal product is a new schizophrenia drug, lumateperone, which is still under development. Plaintiffs sued Intra-Cellular under the Securities Exchange Act of 1934 and Rule 10b-5 in July 2017, after the company disclosed that the FDA had requested additional information related to a non-clinical animal study indicating certain toxicity effects in dogs. Plaintiffs alleged that Intra-Cellular and its senior officers improperly failed to disclose the non-clinical toxicity results earlier. Last month, however, the FDA informed Intra-Cellular that, based on additional submissions by the company, it agreed that the non-clinical animal trial results were irrelevant to human safety, and that the company could move forward with its long-term safety study of the drug in humans. Following this report and prior to making a motion to dismiss the complaint, Paul, Weiss made two written submissions to counsel for the class demonstrating that the complaint was both legally and factually flawed. In response, class counsel voluntarily dismissed the lawsuit.
The Paul, Weiss team included litigation partner Richard Rosen.