Defense Bar Commentary Highlights Practice Points for Biotech Securities Litigation

A panel of corporate advisors updated their 2017 survey of securities litigation involving development-stage biotech companies, providing important practice points for the institutional investor and concluding that biotech start-ups do not pose a greater securities class action risk compared to other companies. Stronger cases involved plaintiffs making credible allegations that defendants intentionally misrepresented data or facts about their interactions with the FDA, omitted adverse regulator feedback, or presented misleading information about regulatory milestones or assessments.

Delaware Set to Expand Exculpation to Certain Officers of Corporations

The Delaware General Assembly is set to consider amendments to the General Corporation Law of the State of Delaware (DGCL), already approved by the Corporation Law Section of the Delaware State Bar Association, to, among other things, allow Delaware corporations to adopt exculpation clauses limiting or eliminating the monetary liability of certain officers. The proposed amendment to Section 102(b)(7) of the DGCL addresses a growing concern over officer liability, albeit by providing narrower exculpation than is available to directors.