According to the Complaint, Lexicon Pharmaceuticals, Inc. is a biopharmaceutical company that focuses on the development and commercialization of pharmaceutical products for the treatment of human diseases.

“Sotagliflozin” is the scientific name of one of Lexicon’s orally-delivered small molecule drug candidates under development. Sotagliflozin is in Phase 3 clinical trials for the treatment of type 1 and type 2 diabetes.

The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the data from Lexicon’s Phase 3 clinical trials assessing the safety and efficacy of Sotagliflozin in treating type 1 diabetes were not as positive as Lexicon represented; (ii) the health risks posed by Sotagliflozin were severe enough to threaten its FDA approval prospects; and (iii) as a result, Lexicon’s public statements were materially false and misleading at all relevant times.

On May 31, 2019, the Court issued an Order appointing Lead Plaintiffs and Counsel. Lead Plaintiffs filed an amended Complaint on July 30. Defendants filed a Motion to Dismiss the amended Complaint on September 30. On August 14, 2020, the Court issued an Order granting Defendants' Motion to Dismiss. The case was dismissed with prejudice. Lead Plaintiffs filed a notice appealing the Court's Dismissal Order on September 11. On October 4, 2021, the Court of Appeals issued a Judgment affirming the District Court's Dismissal Order.