July 6, 2007
U.S. District Court denies defendant's motion to dismiss securities fraud claim
A U.S. District Court in Utah has denied defendant NPS Pharmaceuticals Inc.'s (NASDAQ: NPSP) motion to dismiss in a securities fraud class action lawsuit brought against the drug development company.
"As counsel for the class of shareholders we are very pleased that we will now commence our discovery and class certification efforts," stated a Motley Rice member and securities fraud attorney.
In this case the plaintiff alleges that NPS knew of significant problems with a new drug they were creating, yet intentionally and knowingly made misleading statements regarding the safety, efficacy and potential market size of the drug in violation of the Securities Exchange Act.