Neovasc Inc. Wins Second Circuit Victory in Securities Class Action Dismissal

King & Spalding represented Neovasc Inc. in an appeal of a securities class action in the Second Circuit U.S. Court of Appeals. The case involved a cardiac device company whose stock price dropped after an FDA advisory panel voted against approval of their new device application. The plaintiffs alleged that the company violated the federal securities laws by misrepresenting the status of discussions with the FDA staff and the likelihood of approval of the device. The Second Circuit ruled that the District Court properly dismissed the complaint because plaintiff failed to sufficiently plead actionable misstatements or scienter.