Endologix Secures Dismissal in Stock Drop Case

Secured a rare dismissal (upheld at the Ninth Circuit) on behalf of Endologix in putative securities fraud class action. 

The plaintiff's central theory was that the Endologix made optimistic public statements about obtaining FDA approval for its Nellix aneurysm device while allegedly knowing the FDA would not approve the device on the timeline defendants shared with the market, or at all, because of “unresolvable” safety issues with Nellix. The Ninth Circuit ultimately rejected plaintiff's theory because it had "no basis in logic or common experience." This decision makes it harder for plaintiffs to adequately plead securities fraud claims against drug and medical device companies on the implausible theory that they sought FDA approval of a product that they allegedly knew was doomed to fail (Nguyen v. Endologix, Inc., et al.)