Empirical legal review reveals higher motion to dismiss grant rates for clinical-stage biotech securities class actions than other sectors, suggesting lower litigation vulnerability than assumed.
The article surveys twenty years’ worth of motion to dismiss decisions in federal securities class actions brought against clinical-stage biotech companies and concludes that, contrary to conventional wisdom, these cases are dismissed more often than securities cases brought against other types of companies. The authors discuss their methodology and findings, identify relevant trends, and offer tips to help biotech companies and their insurers avoid and successfully defend against securities suits.
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