Replies to post #111132 on NorthWest Biotherapeutics Inc (NWBO)

[CherryTree1]

I read the entire Yonemura case document for which you provided the link. Thanks

Like the other case they are accusing Linda Powers of wrong doing to enrich herself as you noted in your post:

here is the Yonemura suit
Quote:

PRAYER FOR RELIEF WHEREFORE, Plaintiff demands judgment as follows:

A. Awarding the Company the amount of damages it sustained as a result of the Director Defendants' breaches of fiduciary duties and Cognate's, Powers', and Toucan Capital's aiding and abetting of those breaches of fiduciary duty;

B. Compelling Defendants Cognate, Powers, and Toucan Capital to disgorge to the Company the benefits they have received as a result of the related-party transactions;

C.Awarding to Plaintiff the costs and disbursements of this action, including reasonable attorneys' and experts' fees and expenses;

and D.Granting such other and further relief as the Court deems just and proper

"The Company" is NWBO. So the damages they seek are for NWBO to be made whole. There is no issue in play at all with respect to losses on investments as in other other case.

The main difference seems to be that they want money returned to NWBO, but still they would have to prove that there were "breaches of fiduciary duties". Again if you look at the findings from the other case they were unable to do this:

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.

IMHO the only possible changes, if any, that might come out of this is some modifications to the terms of some of the agreements between NWBO and Cognate like most favored nation status type of things. Again IMHO the relationship between the 2 companies have been very positive overall for NWBO enabling them to be ready to begin mass production once DCVAX approval is received.