Hayden

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

PAUL HAYDEN, et al., Case No. 20-cv-00367-VC

Plaintiffs,

ORDER GRANTING IN PART AND

v. DENYING IN PART DEFENDANTS'

MOTION TO DISMISS SECOND

PORTOLA PHARMACEUTICALS, INC., AMENDED CONSOLIDATED CLASS

et al., ACTION COMPLAINT Defendants. Re: Dkt. No. 119, 138

Investors in Portola Pharmaceuticals bring this suit alleging that the company made misleading statements in violation of the Exchange Act by repeatedly overstating its 2018 revenue. Because Portola made a public stock offering that incorporated those revenue statements, the plaintiffs also allege that Portola and the companies that underwrote the public offering violated the Securities Act. For the reasons explained below, accepting as true the well- pled allegations in the complaint, the plaintiffs have articulated a highly plausible theory of securities fraud. Nonetheless, the motion to dismiss must be granted as to the Exchange Act claims, because the plaintiffs have not adequately alleged loss causation. The motion to dismiss is denied as to the Securities Act claims.…