Monday, March 16, 2015

Faruqi & Faruqi, LLP Wins Historic Appeal In Case Against Chelsea Therapeutics

MARCH 16, 2015

On March 16, 2015, the United States Court of Appeals for the Fourth Circuit determined that the claims asserted against Chelsea Therapeutics International, Ltd. should be remanded for further proceedings because the claims had been erroneously dismissed by the district court:
"Upon our review, we hold that the district court erred in taking judicial notice of the challenged documents filed with the SEC, because those documents did not relate to the contents of the complaint. We further hold that this error was not harmless, because the court incorrectly construed these documents as supporting its holding that the plaintiffs’ allegations of scienter were legally insufficient. Finally, we hold that based on the defendants’ failure to disclose critical information about the weaknesses of the new drug application, the plaintiffs’ allegations were sufficient to support a strong inference of scienter. We therefore vacate the district court’s judgment dismissing the plaintiffs’ complaint and remand the case for further proceedings."
See page 4 of the opinion which is linked below.
Since the enactment of the Private Securities Litigation Reform Act of 1995, this was the first time that the Fourth Circuit reversed a dismissal of a securities fraud suit where the district court had determined that the plaintiffs had failed to plead that the defendants acted with the requisite state of mind.
Plaintiff is represented by Richard W. Gonnello, Megan Sullivan, and Katherine Lenahan of Faruqi & Faruqi, LLP.

RELATED FILES

Friday, March 13, 2015

Court Certifies Class Action in Scotts EZ Seed Consumer Lawsuit

MARCH 13, 2015

On January 26, 2015, Judge Vincent Briccetti of the United States District Court for the Southern District of New York granted plaintiffs motion to certify a class of purchasers of Scotts Turf Builder EZ Seed product (“EZ SEED”).  
The suit, which challenges defendants marketing of EZ Seed, alleges numerous causes of action for false advertising, breach of warranty, and unjust enrichment under New York and California law.
Additionally, Judge Briccetti appointed Faruqi & Faruqi as co-lead class counsel in the matter, citing Faruqi & Faruqi’s “substantial experience in consumer class action litigation.”
Commenting on the ruling, Plaintiffs’ attorney Antonio Vozzolo said, “we are pleased with the court’s well-reasoned and thorough analysis on granting class certification.”
For further inquiries regarding this matter, please contact Antonio Vozzolo at: avozzolo@faruqilaw.com or (212) 983-9330.