Firm Secures Dismissal of Securities Class Action Against Allakos in Northern District of California
12.07.22
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Simpson Thacher successfully obtained the dismissal of a putative shareholder class action against Allakos, Inc. (“Allakos”), a clinical-stage biopharmaceutical company, and certain of its current and former officers in the United States District Court for the Northern District of California. Plaintiffs allege that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, based on alleged material misrepresentations and omissions concerning Allakos’ Phase 2 and Phase 3 clinical trials of lirentelimab (AK002).
In June of 2022, Simpson Thacher filed a Motion to Dismiss Plaintiffs’ Second Amended Complaint after having successfully obtained the dismissal of Plaintiffs’ First Amended Complaint in March 2022 without prejudice. On December 6, 2022, Judge Jeffrey S. White ordered the case dismissed with prejudice, granting Simpson Thacher’s Motion to Dismiss in its entirety and finding that Plaintiffs had yet again failed to adequately plead falsity and scienter. Judge White also denied Plaintiffs leave to further amend the complaint and re-open the Lead Plaintiff selection process.
The Simpson Thacher team included Stephen Blake, James Kreissman, Bryan Jin, Rachel June-Graber, Ryan Snyder and Nick Orr.