Ganem v. InVivo Therapeutics Holdings Corp., No. 15-1544 (1st Cir. 2017)Annotate this Case
After the share price of a corporation’s common stock dropped, investors filed suit against the corporation and its former CEO, alleging securities fraud. The lead plaintiff, on behalf of himself and a putative class of shareholders, alleged that Defendants inflated the value of the corporation’s common stock by issuing false or materially misleading press releases concerning the approval of human clinical trials for a new medical device the company was developing. The district court granted Defendants’ motion to dismiss the complaint. The First Circuit affirmed, holding that Plaintiff failed to allege false or misleading statements sufficient to state a claim and that Plaintiff’s control person claim against the CEO was also properly dismissed.