Aceto Executives Beat Back Second Set of Stock Drop Fraud Claims

Aceto Corp. executives convinced a federal judge Monday to again dismiss a proposed class action alleging the pharmaceutical company misled investors about unfulfilled orders ahead of a 66% stock drop in February 2019.

Investors alleged the company should have been more upfront about the problems it was having with its India-based supplier, Aurobindo, before filing the Chapter 11 bankruptcy paperwork that led the price of Aceto’s common stock to tumble.

But Aceto made several disclosures as early as November 2017 about “supply challenges” which were “all on the manufacturing side,” Judge Edward R. Korman said for the U.S. District Court ...