1st Circ. Finds No Fraud In Ocular Therapeutix Stock Suit

Law360 (April 9, 2020, 4:33 PM EDT) -- Biotech company Ocular Therapeutix didn't intentionally mislead investors in conference calls and filings about manufacturing problems that led to the U.S. Food and Drug Administration twice denying its steroid treatment for eye pain, the First Circuit said Thursday.

The appeals court, in an opinion by Senior Circuit Judge Norman H. Stahl, affirmed the May 2019 decision by a federal judge in Boston to toss the stock-drop suit on the grounds that investors failed to demonstrate the company knowingly made false statements.

The investors accused Ocular of downplaying negative FDA inspections of its manufacturing facilities. The company also allegedly failed to disclose...

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