Scynexis Beats Investor’s Suit Over Drug Recall Risk for Now

Scynexis Inc. and its top executives defeated allegations it didn’t properly disclose the contamination risks of a drug to treat fungal infections from investors before a 2023 recall.

The investor’s claim that the biopharmaceutical company misrepresented compliance with regulatory manufacturing standards was “conclusory and insufficient” without providing details that it failed to monitor standards, Judge Brian Martinotti said. The US District Court for the District of New Jersey judge tossed the proposed class action Wednesday but is letting the shareholder file an amended complaint within a month of his order.

The investor, Brian Feldman, didn’t allege any internal ...