Insmed Granted Summary Judgment in IPLEX Fraudulent Inducement Suit

ALBANY, N.Y. — A New York federal judge has granted Insmed Inc. (NASDAQ: INSM) summary judgment on claims that it fraudulently induced a woman with muscular dystrophy to enter an IPLEX clinical trial with a false promise to support her compassionate use application after the clinical trial.

On Feb. 19, Senior Judge Thomas J. McAvoy of the U.S. District Court for the Northern District of New York found the parties never contractually agreed that the woman would obtain compassionate use of the drug after the clinical trial ended. He further found the woman was not induced to enter the …