Hunter v. Elanco Animal Health Incorporated

Plaintiffs appealed from the dismissal of their proposed securities class action lawsuit against defendant corporation and several of its officers and directors. Plaintiff alleged that the defendants deceived the securities market by asserting that there was significant underlying demand for the defendant’s products when the demand was created by foisting inventory on distributors to create the illusion of greater profitability. The district court dismissed the complaint for failure to state a claim. The Seventh Circuit affirmed, finding that plaintiffs did not meet the heightened pleading standards of the Private Securities Litigation Reform Act. (JACKSON-AKIWUMI and LEE, concurring)