Articles Posted in U.S. 2nd Circuit Court of Appeals

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Plaintiff brought a putative class action against defendants, alleging that defendants violated Section 10(b) and Section 20(a) of the Securities and Exchange Act of 1934, 15 U.S.C. 78u-4(b)(2)(A), by issuing a misleading press release concerning the results of a clinical trial for a drug called bapineuzumab. Plaintiff appealed from the district court's dismissal of his amended complaint with prejudice for failure to state a cause of action under Rule 12(b)(6) and denying leave to amend. The court concluded that, in the context of the full presentation of the details surrounding the study of the drug, nothing omitted from the press release rendered it false or misleading to a reasonable investor. Moreover, the court held that plaintiff offered insufficient additional allegations to cure this deficiency. Accordingly, the court affirmed the judgment of the district court. View "Kleinman v. Elan Corp., PLC" on Justia Law

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Plaintiff appealed from the district court's grant of summary judgment in favor of Merck and the dismissal of her products liability claim for failure to provide an adequate warning regarding the risks associated with Fosamax. Fosamax has allegedly been linked to osteonecrosis of the jaw and plaintiff claimed that Merck should have known of a possible link between the drug and the condition. At issue was whether the district court erred in granting Merck's summary judgment motion after discrediting expert testimony from plaintiff's treating physician. Because the physician's expert testimony contained contradictions that were unequivocal and inescapable, unexplained, arose after the motion for summary judgment was filed, and were central to plaintiff's failure-to-warn claim, the court held that the district court did not err in determining that there was no genuine dispute of material fact raised by the later testimony. View "In Re: Fosamax Products Liability Litigation" on Justia Law

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Kentucky commenced this action in Kentucky state court against Purdue, alleging that Purdue violated Kentucky law by misleading health care providers, consumers, and government officials regarding the risks of addiction associated with the prescription drug OxyContin, which Purdue manufactures, markets, and sells. Following transfer from the Eastern District of Kentucky to the Southern District of New York, the district court granted Kentucky's motion to remand, concluding that it lacked subject-matter jurisdiction because the suit did not meet the Class Action Fairness Act of 2005's (CAFA), Pub. L. No. 109-2, 119 Stat. 4, requirements. Purdue appealed the remand order under 28 U.S.C. 1453(c)(1). The court held that the district court correctly determined that Kentucky's action was not a class action as defined in CAFA, and therefore the case was properly remanded. Accordingly, the petition for leave to appeal was denied. View "Purdue Pharma, L. P. v. Commonwealth of Kentucky" on Justia Law

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Defendant appealed from a conviction of conspiracy to introduce a misbranded drug into interstate commerce, a misdemeanor violation of 21 U.S.C. 331(a) and 333(a)(1). Defendant, a pharmaceutical sales representative, promoted the drug Xyrem for "off-label use." The court agreed with defendant that he was convicted for his speech -- for promoting an FDA-approved drug for off-label use -- in violation of his right of free speech under the First Amendment. The court limited its holding to FDA-approved drugs for which off-label use was not prohibited. Accordingly, the court vacated and remanded. View "United States v. Caronia" on Justia Law