Athenex Officers Beat Investors’ Fraud Claims for FDA Drug Trial

Athenex Inc. investors, who say the company misled them about the likelihood of a metastatic breast cancer drug trial receiving US Food and Drug Administration approval, can’t proceed with their class action, a federal judge said.

After the FDA sent a letter stating its concerns about patient safety and that the company’s application wasn’t ready for approval, Athenex’s stock price dropped from $12.10 on Friday, Feb. 26, 2021, to $5.46 on Monday, March 1, 2021, when the company announced the FDA’s decision. Investors filed a securities class action two days later. The individual defendants also filed a suggestion of Chapter ...