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Cases & Deals

September 10, 2021

Lexicon Pharmaceuticals, Inc. - 5th Circuit Court of Appeals Affirms Dismissal

King & Spalding secured the dismissal of a $150 million securities class action lawsuit filed against Lexicon Pharmaceuticals Inc., and certain officers filed in the Southern District of Texas under Sections 10(b) and 20(a) of the Securities Exchange Act.  Plaintiffs alleged that the Company made false statements about the results of clinical trials for a diabetes drug and the likelihood of FDA approval of that drug.  Plaintiffs claimed damages related to the drop in Lexicon’s stock price after the FDA failed to approve the drug.  On August 14, 2020, the Court granted our motion to dismiss in full, with prejudice.  This is significant because it was Plaintiffs’ first attempt at pleading securities fraud.  Plaintiffs appealed to the Fifth Circuit, which affirmed the district court judgment in an opinion dated September 10, 2021.