Aceto Executives Defeat Class Action Linking Fraud to Stock Drop

Aceto Corp. executives convinced a federal court to dismiss a class action alleging securities fraud in connection with a 64% stock price decline in the drug company in April 2018.

Lead plaintiff Michael Bonine failed to show the executives violated the Securities Exchange Act by making material misrepresentations about Aceto’s internal controls and earnings prospects, said Judge Edward R. Korman of the U.S. District Court for the Eastern District of New York.

The claim against Aceto has been stayed because it filed for bankruptcy, the court said.

Bonine couldn’t show that the defendants knew about an internal control problem that ...