Biotech Securities Suit Gets Lead Plaintiff But No Counsel

A would-be class suit against a biotech firm for allegedly misleading investors about a rejected patent secured a lead plaintiff Jan. 16, but judicial worries about “exorbitant” fees leave class counsel uncertain.

Yedid Lawi will serve as lead plaintiff in the suit against PolarityTE Inc. for allegedly not disclosing the firm’s purchase of an already-rejected skin grafting patent, according to Judge Jill Parrish’s opinion. But Lawi still needs to explain why the court should approve his chosen class counsel, the opinion said.

Lawi initially competed with two others for the role, but Michael A. Motto later chose not to oppose ...