Shanawaz v. Intellipharmaceutics Int’l Inc., No. 17-CV-5761 (JPO) (S.D.N.Y. July 30, 2020)

On July 30, 2020, Judge J. Paul Oetken of the Southern District of New York preliminarily approved a settlement in a putative shareholder class action concerning development of an OxyContin alternative, Rexista.  The parties agreed to a settlement amount of $1.6 million.

As discussed in a previous post, in December 2018, Judge Oetken granted defendants’ motion to dismiss allegations with respect to statements regarding Rexista’s bioequivalence to OxyCotin and statements regarding Rexista’s abuse-deterrent features as disputes over the interpretation of data.  However, the Court found that plaintiffs adequately alleged a claim that defendants misrepresented the contents of Rexista’s New Drug Application as including studies it did not include.

The settlement fairness hearing is currently scheduled for December 4, 2020.