Fulcrum Sheds Investor Suit Over Blood Treatment Trial Safety

Fulcrum Therapeutics Inc. beat allegations that the the biotech company misdirected investors about the safety and likelihood of federal approval for its sickle-cell treatment.

The lead plaintiff only sufficiently alleged one misleading statement about the treatment, FTX-6058—that it had no adverse affects—Judge Indira Talwani said Thursday. Still, Steven Santillanes failed to plead the level of intent or reckless disregard to deceive by then-executives to bring securities fraud claims, the US District Court for the District of Massachusetts judge said when granting Fulcrum’s motion to dismiss.

The investor alleged former executives concealed that FTX-6058 presented safety concerns for human test ...