Investors following the securities lawsuit against Neumora Therapeutics (NMRA) are facing another procedural turn after a federal judge denied the defendants’ pending motion to dismiss without prejudice and approved a revised briefing schedule tied to a forthcoming amended complaint.
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The case is pending in the U.S. District Court for the Southern District of New York and involves Securities Act allegations against Neumora, several executives and directors, and multiple underwriting firms.
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Plaintiffs Seek to Address Standing Challenges
According to the court filing, Lead Plaintiff Victor Otcheretko intends to file a Second Amended Complaint adding the City of Daytona Beach Police & Firefighters’ Pension Fund as an additional named plaintiff. Plaintiffs stated that the amendment is intended to address standing-related arguments raised by defendants in their pending dismissal motion.
The filing states that defendants challenged plaintiffs’ statutory standing under the Securities Act of 1933 in their original motion to dismiss. Plaintiffs maintain that the existing complaint already adequately alleged standing, but nevertheless sought to supplement the pleading with additional allegations and an added plaintiff.
Defendants consented to the filing of the Second Amended Complaint, subject to the establishment of a revised briefing schedule governing anticipated new dismissal motions.
Court Denies Pending Motion Without Prejudice
Judge John P. Cronan denied without prejudice the defendants’ existing motion to dismiss the Amended Complaint and directed the Clerk of Court to close the related docket entries.
A denial without prejudice means the court did not issue a final ruling on the merits of the dismissal arguments. Instead, defendants are expected to renew their challenges after plaintiffs submit the revised complaint.
The revised schedule gives defendants 40 days after the filing of the Second Amended Complaint to file new motions to dismiss. Plaintiffs will then have 40 days to oppose those motions, followed by a 28-day reply period for defendants.
What the Case Means Procedurally
The latest filing does not determine liability or resolve the underlying allegations against Neumora or the other defendants. Instead, it resets the litigation timeline while plaintiffs revise their pleading to address threshold standing issues raised by defendants.
The addition of another named plaintiff is significant because standing disputes can affect whether investors are permitted to pursue claims tied to particular securities offerings or transactions. By amending the complaint now, plaintiffs appear to be attempting to avoid dismissal on procedural grounds before the court reaches the substance of the allegations.
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