A class action lawsuit against Inspire Pharmaceuticals has been dismissed, the company said in a filing with the Securities and Exchange Commission on Friday.
The suit was dismissed “with prejudice” by the U.S. District Court for the Middle District of North Carolina on Thursday. It had been filed in March. Inspire filed for dismissal in June.
The lawsuits was related to the company’s Phase III clinical trial of its proposed dry-eye drug candidate Prolacria. The Food and Drug Administration rejected the drug.
Inspire reported "mixed results" in the drug’s Phase III trial in February of 2005. The news prompted an immediate 44 percent drop in Inspire’s stock from $16 to under $9.
In September of 2005, Inspire acknowledged that the SEC had launched an investigation of trading in Inspire shares.
If the plaintiffs choose to appeal, Inspire said would “defend the litigation vigorously.”