Acelyrin Wins Round in Investor Lawsuit Over Drug’s Prospects

Acelyrin Inc. investors can’t proceed with a proposed class action alleging misrepresentations about the progress of a clinical trial for a drug candidate, at least as currently pleaded, a federal court ruled.

The investors’ theory of Acelyrin leaders’ intent doesn’t make sense, Judge Fernando M. Olguin said Monday for the US District Court for the Central District of California. It’s not clear why executives would want to keep the company’s stock price inflated—assuming they knew about problems with the clinical trial—given that the complaint doesn’t allege they engaged in insider sales while the stock price was inflated, he said.

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