Source: DVM 360
A federal judge in Maryland has dismissed a securities class action lawsuit against Elanco Animal Health related to its drug Zenrelia (ilunocitinib tablets). Investors alleged the company misled them about the drug’s safety and overstated its FDA approval timeline. However, Judge Brendan A. Hurson ruled that most of Elanco’s statements were protected as forward-looking opinions or nonactionable “corporate puffery,” noting the company consistently framed timelines as expectations rather than guarantees.
The court also rejected claims that Elanco improperly withheld a vaccine response study, finding no legal obligation to disclose it at that stage and insufficient evidence of intent to deceive. In addition, testimony from a former employee was deemed unreliable. Ultimately, the judge concluded that the more plausible interpretation was that Elanco did not believe the study would impact approval. The lawsuit followed delays that briefly affected the company’s stock price.