Case: Arena Pharmaceuticals, Inc. Securities Litigation, Case No. 10-cv-1959 CAB

Court: Southern District of California
Class Period: May 11, 2009 through January 27, 2011
Attorneys: Laurence D. King, Jeffery P. Campisi

Kaplan Fox is court-appointed lead counsel in this securities class action. The action is brought on behalf of purchasers of securities of Arena Pharmaceuticals, Inc. (“Arena” or the “Company”) and alleges that Arena and certain of its executives violated the federal securities laws by making misrepresentations and failing to disclose material information regarding the safety of Arena’s new weight-loss drug, lorcaserin (now known as Belviq). In particular, the action alleges that defendants failed to disclose an adverse nonclinical study in rats that indicated lorcaserin caused cancer in rats.

 

On August 8, 2011, the Court appointed Kaplan Fox lead counsel for the Lead Plaintiff and the proposed class. A consolidated amended complaint was filed on November 1, 2011. On December 30, 2011, defendants moved to dismiss the action and on February 14, 2012, Lead Plaintiff filed a memorandum of law in opposition to defendants’ motion to dismiss. Defendants filed a reply brief on March 14, 2012. On March 28, 2013 the court granted defendants’ motion to dismiss without prejudice to the filing of an amended complaint.

 

On May 13, 2013, an amended complaint was filed. Defendants have moved to dismiss the amended complaint and on July 25, 2013, Lead Plaintiff filed his opposition. On October 25, 2013, the court held a hearing concerning the defendants' motion to dismiss, and on November 4, 2013, the court granted defendants' motion to dismiss without prejudice to the Lead Plaintiff further amending the complaint. On November 27, 2013, Lead Plaintiff moved to amend the complaint.

On March 20, 2014, the Court denied Lead Plaintiff's motion to amend. Lead Plaintiff has appealed the Court's November 4, 2013 and March 20, 2014 orders to the United States Court of Appeals for the Ninth Circuit.

On October 26, 2016, in a unanimous decision, the United States Court of Appeals for the Ninth Circuit reversed the district court’s dismissal and remanded the Action to the district court.  

On February 2, 2017, Defendants moved again to dismiss the action, asserting that the complaint failed to adequately allege that Defendants made a false and misleading statement.  On April 28, 2017, the court denied Defendants’ motion to dismiss in its entirety.