RCT Defeats Challenge to $50 Million Action
On September 30, 2015, the U.S. District Court for the Eastern District of New York ruled in favor of RCT’s client, Neogenix Oncology Inc., by denying six motions to dismiss Neogenix’s $50 million lawsuit against its former officers, directors, and outside counsel for breaches of fiduciary duty, malpractice, and fraud. Once a promising biotechnology company developing genetically engineered cancer treatments, Neogenix is now in bankruptcy and pursuing claims against those who caused its downfall through the sale of securities by unregistered brokers. In prevailing over the motions to dismiss, Neogenix defeated arguments that its claims were barred by the Wagoner Rule, in pari delicto, and the business judgment rule. See Neogenix Oncology, Inc. v. Peter Gordon, et al.,— F. Supp. 2d —, 2015 WL 5725182 (E.D.N.Y. Sept. 30, 2015).
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