Shih v. Amylyx Pharmaceuticals, Inc.

Background

The court had previously appointed Jeff Schryver as lead plaintiff and Levi & Korinsky as lead counsel in this securities case. The plaintiffs then asked the court to substitute Oliver Shih as lead plaintiff and Pomerantz LLP as lead counsel.

Reasoning

The court explained that courts may consider requests to remove, withdraw, substitute, or add lead plaintiffs during a securities class action, even though the Private Securities Litigation Reform Act and Federal Rule of Civil Procedure 23 do not expressly authorize those particular motions. It also stated that, absent a good reason, a plaintiff generally should not be forced to litigate against that plaintiff’s wishes.

The court found no good reason to require Schryver to continue. Schryver no longer wanted to serve, the court had appointed him only recently, and no major decisions had been made since that appointment. Because Shih and Schryver were the only plaintiffs who had sought appointment as lead plaintiff, Shih became the presumptive lead plaintiff, and the court found that presumption had not been rebutted.

The court reviewed Pomerantz LLP’s qualifications and found that the firm had the knowledge, experience, and resources to serve as lead counsel. The court also referred to the strong presumption favoring approval of a lead plaintiff’s choice of counsel.

Disposition

The court appointed Oliver Shih as lead plaintiff and Pomerantz LLP as lead counsel. Judge Arun Subramanian also noted that the schedule ordered on April 17 remained due on April 23, 2024. The order did not decide the underlying claims in the securities case.