Bellomo v. Xenoport, Inc. et al

Filing 41

ORDER by Judge Whyte granting 24 Motion to Dismiss (rmwlc1, COURT STAFF) (Filed on 5/20/2011)

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E-FILED on 05/20/2011

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IN THE UNITED STATES DISTRICT COURT

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FOR THE NORTHERN DISTRICT OF CALIFORNIA

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United States District Court
For the Northern District of California

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SAN JOSE DIVISION

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IN RE XENOPORT, INC. SECURITIES
LITIGATION

No. C-10-03301 RMW
ORDER GRANTING MOTION TO DISMISS
CONSOLIDATED COMPLAINT
[Re Docket No. 24]

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Defendant XenoPort, Inc. ("XenoPort") and individual defendants Ronald W. Barrett (Chief
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Executive Officer), William J. Rieflin (President), David A. Stamler (Chief Medical Officer), Mark
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A. Gallop (Senior Vice President of Research), and David R. Savello (Senior Vice President of
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Development) ("individual defendants" and, collectively with XenoPort, the "defendants") move to
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dismiss all claims asserted against them in plaintiffs' Consolidated Complaint For Violations Of The
Federal Securities Laws ("Consolidated Complaint"). On May 20, 2011 the court held a hearing to
consider defendants' motion. Having considered the papers submitted by the parties and the
arguments of counsel, and for the reasons set forth below, the court grants the motion. Plaintiffs'
Consolidated Complaint is dismissed with thirty days leave to amend. Plaintiffs' theory, as disclosed
at oral argument, is based upon defendants' alleged failure to disclose XP13512 test results that
showed cancer signals in female rats. In their amended complaint, plaintiffs must allege material
facts that defendants knew were material, but did not disclose. Moreover, plaintiffs' amended
ORDER GRANTING MOTION TO DISMISS CONSOLIDATED COMPLAINT—No. C-10-03301 RMW
JLR

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complaint should not include allegations of public statements made by defendants that are alleged to

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be false, unless plaintiffs also include factual allegations showing why each statement was false and

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that defendants knew it was false at the time it was made.

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DATED:

05/20/2011
RONALD M. WHYTE
United States District Judge

United States District Court
For the Northern District of California

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ORDER GRANTING MOTION TO DISMISS CONSOLIDATED COMPLAINT—No. C-10-03301 RMW
JLR
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