Allysian Sciences exec fraud lawsuit dismissed
The lawsuit accusing Allysian Sciences executives of $50 million in fraud has been dismissed.
As per a February 15th order, fraud alleged in the complaint falls outside the statute of limitations.
As pointed out by the court;
Plaintiffs allege that the unregistered sales occurred between January 2018 and June 6, 2018.
Plaintiffs filed the complaint more than three years later on August 13, 2021.
This is longer than one year after the violation upon which the claim is based.
Subsequently, the majority of causes of action were dismissed because they were “barred by the statute of limitations”.
Remaining causes of actions to be dealt with included “Control Person Claims” and “State Law Claims”.
With respect to Control Person Claims, the court found
Plaintiffs failed to plead primary violations of the securities laws.
Thus, the Court dismisses the control person claims.
State Law Claims were dismissed because the court
dismissed all the federal claims (and thus) declines to exercise supplemental jurisdiction over the state law claims under § 1367(c)(3).
Plaintiffs were denied the option to amend their complaint, owing to the expired statute of limitations being an insurmountable barrier.