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Frequency Therapeutics Wins Suit Over Adverse Medical Study News

June 22, 2022, 4:56 PM

Frequency Therapeutics and its CEO prevailed in a shareholder lawsuit accusing him of trying to profit on shares before damaging news about a medical study came out.

The Delaware Chancery Court on Tuesday dismissed the complaint against the biotech company and its CEO, David Lucchino, stating that the breach of fiduciary duty claim “is entirely conclusory with no supporting facts.”

Investors suing the Massachusetts-based company said they tried in early 2021 to sell their shares, but were unable to get the company’s stock transfer agent to do so until six weeks later.

The day before the shares were transferred, in ...