Press Release

Morgan Lewis Wins Class Action for Abeona Therapeutics

Friday, November 20, 2015

BOSTON, November 12, 2015: Morgan Lewis secured the dismissal of all claims against Access Pharmaceuticals Inc. (now called Abeona Therapeutics), SCO Financial Group, MacroChem Corporation, and certain of the companies’ officers and directors, in a purported class action and shareholder derivative action filed in the US District Court for the Eastern District of Pennsylvania.

The complaint alleged causes of action for breach of fiduciary duty and aiding and abetting breaches of fiduciary duties in connection with the failure of pharmaceutical company Genaera Corp. In support of the firm’s motion to dismiss, partner Jordan Hershman, leader of the firm’s Securities Litigation Practice, stressed at oral argument that actions taken during arms-length negotiations cannot support a valid claim for aiding and abetting an alleged breach of fiduciary duty. US District Judge Berle Schiller agreed. On November 10, he dismissed all claims against all defendants, with prejudice, holding that plaintiff’s claims against the firm’s clients were "not supported by any facts."

In addition to Mr. Hershman, the Morgan Lewis team was led by partner Michael Blanchard. Support was provided by partner Marc Sonnenfeld and associates Chris Wasil and Laura Hughes McNally.