NorthWest Biotherapeutics Inc (NWBO)

[CherryTree1]

Yes understand, but when you allege:

In Yonemura, NWBO (via owners) are suing Cognate and LP for damages from alleged self dealing. They are asking money to be returned to NWBO from Cognate. Even if the events in play are the same, the nature of the lawsuits are very different. And that is why one is dismissed and the other is being settled. The settlement will most likely involve LP/Cognate returning some of her profits to NWBO, though I doubt any cash flows.

Not seeing that at all. That is why I included this statement from the ruling in the other case:

Finally, Plaintiffs unsuccessfully attempt to raise a "strong inference of scienter" based upon Defendants' "unique financial motive to inflate NW Bio's stock price." Specifically, they allege that "NW Bio operated as a fiefdom for the personal benefit of Powers," and "ecause the lavish benefits that NW Bio conferred upon Cognate, Powers, and her Toucan Group of companies far exceeded the Company's assets, NW Bio had to repeatedly tap the public markets." Even if that were true, it does not follow that "defendant acted with the required state of mind" to defraud investors. "A strong inference of fraud does not arise merely from seeking capital to support a risky venture. Indeed, the motivations to raise capital or increase one's own compensation are common to every company and thus add little to an inference of fraud." That Defendants may have wished to raise capital for other business ventures does not, on its own, establish fraudulent intent.

To conclude, it bears noting that:

All investments carry risk, particularly in a field like biopharmaceuticals. If we inferred scienter from every bullish statement by a pharmaceutical company that was trying to raise funds, we would choke off the lifeblood of innovation in medicine by fueling frivolous litigation — exactly what Congress sought to avoid by enacting the PSLRA.

It is more likely they will find the same in the Yonemura case. Case dismissed with assessed damages = $0