Khoja v. Orexigen Therapeutics, Inc. et al., No.16-56069 (9th Circuit). On August 13, 2018, the Ninth Circuit Court of Appeals handed lead plaintiff a major win when it overturned much of the lower court’s order dismissing all claims against Defendant Orexigen Therapeutics, Inc. In a detailed 59-page opinion written by Judge A. Wallace Tashima and designated for publication, the Court found that the trial court, “in dismissing the action” had “abused its discretion by improperly considering materials outside of the complaint.” Noting a “concerning pattern in securities cases like this one” -where defendants improperly “exploit” the incorporation-by-reference doctrine and judicial notice procedure-the Court stated that this opinion aimed to “clarify” these procedures.
For a further analysis see,
Ninth Circuit Decries Consideration of Extraneous Matter, Reverses Securities Suit Dismissal
By Kevin LaCroix, THE D&O DIARY, August 14, 2018
Click here to read the Orexigen Decision.