Lipton

Lipton v. Pathogenesis Corp.

Caution

284 F.3d 1027

United States Court of Appeals for the Ninth CircuitMarch 20, 2002Nos. 00-35268, 00-35313, CV-99-00419-TSZ, CV-99-00439-TSZ, CV-99-00452-RSL, CV-99-00453-JCC, CV-99-00455-WLD, CV-99-00469-BJR, CV-99-00503-RSL, CV-99-00506-BJRCalifornia4,704 words

Opinion

Lead Opinion

Gould, J.

Plaintiffs brought this securities fraud class action under §§ 10(b), 20(a) and 20A of the Securities Exchange Act of 1934, 15 U.S.C. §§ 783 (b), 78t(a), 78t-l(a) and Rule 10b-5, 17 C.F.R. § 240 .10b-5, on behalf of all purchasers of PathoGenesis Corporation common stock on the open market between January 15, 1999 and March 22, 1999. Plaintiffs appeal the district court’s Rule 12(b)(6) dismissal of their consolidated complaint, without leave to amend, for failure to meet the pleading requirements of the Private Securities Litigation Reform Act of 1995, 15 U.S.C. §§ 78u-4 and 78u-5. We have jurisdiction under 28 U.S.C. § 1291 and affirm.

I. BACKGROUND

A. Facts

PathoGenesis Corporation (“PathoGenesis” or “the Company”), founded in 1991, is a pharmaceutical company that develops and markets medicines to treat chronic infectious diseases. PathoGenesis developed TOBI, (tobramycin solution for inhalation), the first inhaled antibiotic designed to treat lung infections for people with cystic fibrosis. Tobramycin, the key element in TOBI, is an antibiotic that had previously been administered through intravenous injection. The introduction of TOBI was an advance in the…

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