Palo Alto – August 29, 2025 – Cooley secured a decisive win for Scynexis in a putative securities class action under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

Judge Brian Martinotti of the US District Court for the District of New Jersey granted Scynexis’ motion to dismiss the plaintiff’s complaint without prejudice. Instead of amending the complaint, in August 2025, the plaintiff voluntarily dismissed the case with prejudice and told the court that he does not plan to appeal the dismissal order.

The plaintiff alleged Scynexis and certain executives misled investors by overstating the capabilities of its third-party drug manufacturer and failing to disclose a potential cross-contamination risk that led to a voluntary recall and clinical hold, resulting in a stock drop. An amended complaint was filed in 2024 alleging violations of Sections 10(b) and 20(a) of the Exchange Act. The court found the plaintiff’s claims conclusory and lacking particularized facts, such as internal documents or confidential witnesses, to support the assertion that Scynexis knowingly made false or misleading statements.

The Cooley team representing Scynexis includes partners Shannon Eagan and Brett De Jarnette, special counsel Caroline Pignatelli, and associates Amanda Jereige and Priya Gambhir.

The case is Feldman v. Scynexis, Inc. et al (Case No. 2:23-cv-22082) before the District of New Jersey.

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