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In re Rockwell Med., Inc. Sec. Litig.

United States District Court for the Southern District of New York

March 30, 2018, Decided; March 30, 2018, Filed

No. 16 Civ 1691 (RJS)

Opinion

MEMORANDUM AND ORDER

Richard J. Sullivan, District Judge:

Lead Plaintiffs Dmitriy Chatskiy, Douglas Benkowski and Earl McCrary ("Plaintiffs") bring this putative class action securities fraud lawsuit against Rockwell Medical, Inc. ("Rockwell"), its Chief Executive Officer, and its Chief Financial Officer (collectively "Defendants"). They allege violations of Section 10(b) of the Securities Exchange Act of 1934 (the "Exchange Act"), 15 U.S.C. § 78j(b); Securities and Exchange Commission ("SEC") Rule 10b-5, 17 C.F.R. § 240.10b-5; and Section 20(a) of the Exchange Act, 15 U.S.C. § 78t(a).

Now before the Court is Defendants' motion to dismiss the Second Amended Complaint pursuant to Federal Rule of Civil Procedure 12(b)(6). (Doc. No. 44.) For the reasons set forth below, Defendants' motion is granted.

I. Background1

A. The Parties

Plaintiffs are investors who purchased Rockwell common stock between November 20, 2014 and February 29, 2016 (the "Class Period") and claim to have suffered damages as a result of false or misleading statements made by Defendants. (Second Amended Complaint ("Compl.") ¶¶ 1, 21-23.) Rockwell, whose stock is publicly traded on the NASDAQ stock market under the ticker symbol "RMTI," is a biopharmaceutical [*3]  company that focuses on developing treatments for patients suffering from end-stage renal disease and chronic kidney disease. (Id. ¶¶ 2, 24, 55.) During the Class Period, Defendant Robert L. Chioini served as President, Chief Executive Officer, and Director, while Defendant Thomas E. Klema served as Rockwell's Vice President of Finance, Chief Financial Officer, Treasurer, and Secretary. (Id. ¶¶ 25-26.)

B. Facts

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2018 U.S. Dist. LEXIS 56897 *; Fed. Sec. L. Rep. (CCH) P100,078

IN RE ROCKWELL MEDICAL, INC. SECURITIES LITIGATION

CORE TERMS

liquid, powder, scienter, omissions, launch, dialysis, misstatements, misleading, iron, clinical, investor, reckless, patients, packet, stock, disclosure, predicted, misrepresentation, analyst, announcing, confidence, packaging, insiders, fraudulent, label, manufacturing, misbehavior, optimistic, conscious, customer