U.S. Court Dismisses ESSA Pharma Securities Fraud Lawsuit on July 16

According to Judge William C. Griesbach of the U.S. District Court for the Eastern District of Wisconsin, ESSA Pharma Inc. and its former executives were cleared of securities fraud allegations on July 16 when the court dismissed a proposed class-action lawsuit. The judge ruled that investors failed to adequately establish a reasonable inference of securities fraud against ESSA and executives David R. Parkinson and Peter Virsik.

Plaintiffs alleged that the company and former executives had touted their core prostate cancer drug as capable of overcoming significant obstacles, despite having clear and continuous evidence that drug exposure levels achieved in trials were insufficient across all measures.