ZURICH-SCHLIEREN, Switzerland and CONCORD, Mass. - Molecular Partners AG (SIX: MOLN; NASDAQ: MOLN), a biotechnology company specializing in the development of DARPin therapeutics, has successfully secured the dismissal of a putative class action lawsuit that had been brought against it and certain members of its leadership.
The case, which had been filed with the U.S. District Court for the Southern District of New York, was ordered closed on February 29, 2024.
The litigation began on July 12, 2022, when the initial complaint was lodged, alleging that the company and its executives had violated federal securities laws. The accusations centered around purported misrepresentations and omissions concerning the company's product candidate MP0310 and its related licensing agreement.
The plaintiffs, representing individuals or entities that purchased the company's American Depositary Shares during the initial public offering, sought unspecified compensatory damages and other costs.
An amended complaint was filed on May 23, 2023, but on February 5, 2024, the court dismissed this complaint without prejudice, allowing the plaintiff a chance to amend their complaint by February 26, 2024. However, the plaintiff chose to file a stipulation of dismissal with prejudice on February 23, leading to the court's decision to close the case.
Molecular Partners, founded in 2004 with offices in both Switzerland and the United States, is known for its pioneering work in DARPin therapeutics, which are designed to address medical challenges that are difficult for traditional drug modalities. The company's focus is primarily on oncology, with various programs in different stages of pre-clinical and clinical development.
The dismissal of the lawsuit marks a significant legal victory for Molecular Partners, allowing the company to continue its efforts in drug development without the overhang of litigation. The information for this report is based on a press release statement from the company.
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