A federal judge on Friday dismissed a lawsuit that accused a Gaithersburg-based GenVec Inc. of misleading investors about a pancreatic cancer drug, The Washington Business Journal reports.
The class-action lawsuit was filed last year and claimed that GenVec executives overstated the success of TNFerade, causing the company’s stock to trade artificially high. But the drug failed in later trials, prompting GenVec to end the program and causing its stock to drop, The Business Journal reports.
U.S. District Court Judge Deborah Chasanow said the complaint—which was more than 150 pages—failed to show that GenVec did anything illegal, The Business Journal reports.
>>>See: “Shareholder Suit Against GenVec Dismissed” at BizJournals.com.
Earlier this month, GenVec announced it was backing off plans to dissolve and named a new CEO, Patch has reported.
Douglas J. Swirsky—the company’s senior vice president and chief financial officer since 2006—was named chief executive officer. Cynthia Collins resigned her position as CEO.