Hedge fund Yorkville Advisors has fended off a lawsuit accusing it of scheming against a pharmaceutical company.
A federal judge in New Jersey dismissed the complaint, filed by investors in Cobalis Corp. U.S. District Judge Dennis Cavanaugh ruled that the matter had already been litigated to no avail and that the investor suit was simply "another bite at the apple."
"Cobalis and its privies, plaintiffs, have had multiple opportunities to litigate this very issue, with two federal judges determining that they have no claim upon which relief can be granted," Cavanaugh wrote. "It is improper and a waste of judicial resources to continue to entertain this issue, even when it is refashioned as a claim by the privies of the corporation and not the corporation itself."
Cobalis, which makes an over-the-counter dietary supplement designed to treat allergies, accused Yorkville of shorting Cobalis' stock to drive its drive down while also entering into a private investment in public equities transaction in which the Radovich family, which runs Cobalis, pledged stock as collateral.
"We are pleased with Judge Cavanaugh's opinion dismissing yet another baseless litigation brought by the Radovich family and its various entities," Yorkville lawyer Nikolas Komyati told Law360.