Davis Polk Obtains Dismissal for Orexigen Directors in a Stock Compensation Derivative Litigation
Davis Polk represents several current and former directors of Orexigen Therapeutics (the “Company”) in connection with derivative litigation relating to the award of equity compensation. On January 29, 2015, working in connection with counsel for the Company, Davis Polk succeeded in obtaining a dismissal with prejudice of all claims filed by a derivative plaintiff in the Superior Court of California, County of San Diego. In a decision entered on October 24, 2014, the court accepted defendants’ arguments that the plaintiff lacked standing to bring his claims, and that he had failed to plead facts indicating that the board was not independent or that it had acted in bad faith. Plaintiff thereafter sought to stay the action to seek additional information, a request that the defendants opposed. After a hearing on January 29, 2015, the court sided with defendants, refusing to stay the case and granting a full dismissal with prejudice.
The Davis Polk team included partners Neal A. Potischman and Charles S. Duggan, and associates Alyse Katz and Gerald M. Moody Jr. Members of the Davis Polk team are based in the Menlo Park and New York offices.
Cooley LLP advised the Company and its chief executive officer.