Sandra Hunter v. Elanco Animal Health Incorporated

Summary

The court affirmed dismissal with prejudice of the proposed securities class action because the complaint did not plead a strong inference of scienter under the heightened requirements applicable to the Exchange Act claims. It also held that the Securities Act claims sounded in fraud and therefore were subject to Rule 9(b), and that the Item 303 claim concerned an internal sales strategy rather than a disclosable external trend. The court further affirmed dismissal of the control-person claims because they depended on viable underlying securities-law violations.