A federal court has dismissed a proposed class action lawsuit brought by investors against Spero Therapeutics. The lawsuit centered on claims that the company made optimistic statements regarding a clinical trial and the potential FDA approval of tebipenem pivoxil hydrobromide. The U.S. District Court for the Eastern District of New York ruled that the investors did not adequately demonstrate the necessary intent for securities fraud on the part of Spero Therapeutics and its top executives.
The legal action was initiated after the FDA provided negative feedback in 2022 concerning tebipenem pivoxil hydrobromide, an oral antibacterial drug intended for the treatment of complicated urinary tract infections (cUTIs). Spero's announcement on March 31, 2022, regarding the FDA's feedback triggered the lawsuit.
The investors alleged that Spero misled them about the drug's prospects, leading to financial losses when the FDA's concerns became public. However, the court determined that the plaintiffs failed to provide sufficient evidence to support their claims of fraudulent intent. This decision marks a setback for the investors and allows Spero Therapeutics to move forward without the burden of this particular legal challenge.
