The Firm prevailed at summary judgment on behalf of its clients Intellipharmaceutics International, Inc., and its Chief Executive Officer, Chief Operating Officer, and its former Chief Financial Officer (the “CFO”). The Plaintiff, Alpha Capital Anstalt, asserted claims under the Securities Act of 1933 alleging that the relevant prospectus was misleading because it failed to disclose that the CFO would resign shortly after the offering.
After the close of fact and expert discovery, Defendants filed a motion for summary judgment arguing they were entitled to judgment on their “negative causation” defense because Plaintiff’s losses were not caused by any purported misrepresentation or omission. Judge Cote granted the motion, holding “Defendants have proven that Alpha’s losses did not result from any statement or omission challenged by Alpha” and that the Plaintiff’s expert who addressed the Defendants’ negative causation defense should be excluded.
The case is Alpha Capital Anstalt v. Intellipharmaceutics Int’l Inc. et al, Case No. 19-cv-09270-DLC (S.D.N.Y.) and a copy of the Court’s opinion can be found here.