Chancery Won't Pause Vaxart Insider-Trading Suit In Del.

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Law360 (November 9, 2020, 10:01 PM EST) — Citing Delaware’s stronger interest in judging corporate law breach claims tied to a more than $200 million insider-trading scheme involving biotech firm Vaxart Inc., a Delaware Chancery Court judge refused Monday to stay a stockholder suit in favor of a California version.

Vice Chancellor Paul A. Fioravanti, ruling at the end of a teleconference hearing, rejected arguments by an attorney for Vaxart’s directors that the California state court derivative suit, filed Aug. 4, should have deference as a “first-filed” case buttressed by company documents. The directors also argued that staying the Delaware cases would benefit Vaxart’s stockholders by ending potentially costly…