Halyard Health (NYSE:HYH) said late last week that it was granted a motion to dismiss a suit claiming it artificially inflated its stock prices, and that damages in another case were slashed by over 90%.
The Alpharetta, Ga.-based company said that it, along with a number of its executives, were facing a case claiming violations of the Securities Exchange Act. In the case, a group of shareholders alleged that Halyard misrepresented or failed to disclose information about the safety and effectiveness of its MicroCool gowns to inflate stock prices.
The company said it moved to dismiss the case in February, and that the court granted its motion on March 30.
Halyard Health said that in a separate case, in which it was facing punitive damages of approximately $100 million, those damages were reduced to $1.3 million. In the same case, punitive damages faced by its former parent company Kimberly-Clark were reduced from $350 million to $19.5 million, according to an SEC filing.
Total compensatory damages and punitive damages, alongside pre-judgement interest, was reduced to $1.6 million for Halyard health, and $24.4 million for Kimberly Clark, the company said.
In early March, Halyard said it was suing its former parent company Kimberly-Clark seeking to clear Halyard’s responsibility to pay for damages in a fraud case decided last April.