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Esperion Directors Escape Investor Row Over Cholesterol Drug

Feb. 14, 2020, 7:34 PM

An Esperion Therapeutics Inc. investor can’t sue the company’s directors derivatively for misstatements that allegedly led its stock to lose more than 50% in value, because he didn’t show it would have been futile to demand the company take action, the Delaware Chancery Court said.

The court Thursday dismissed Hubert Owens’ derivative suit against Esperion’s directors, who allegedly breached their fiduciary duty by publicly saying that the company’s cholesterol-lowering drug had a “clear path” to approval by the federal Food and Drug Administration, only to be contradicted by the agency a month later.

The decision to litigate on a corporation’s...

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