Foley Secures Third Circuit Dismissal of Securities Fraud Class Action Case

Foley & Lardner LLP secured a significant victory at the U.S. Court of Appeals for the Third Circuit on behalf of Innovative Industrial Properties, Inc. (IIP), obtaining affirmation of a dismissal with prejudice in a federal securities fraud class action.

The putative class action — Michael V. Mallozzi, individually and on behalf of others similarly situated v. Innovative Industrial Properties, Inc., et al. — was initially filed in April 2022 in the U.S. District Court for the District of New Jersey. The lawsuit alleged that IIP, a publicly traded real estate investment trust focused on the acquisition, ownership, and management of specialized industrial properties and financial investments in the life science industry, and certain officers made false or misleading statements regarding the company’s business in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, SEC Rule 10b‑5, and related provisions on behalf of individuals who purchased IIP’s common stock during claimed class periods.

Following multiple amended complaints, Foley moved to dismiss at each stage. On September 25, 2024, the district court granted defendants’ motion to dismiss the Second Amended Class Action Complaint with prejudice, rejecting the plaintiffs’ allegations. The plaintiffs appealed to the Third Circuit, challenging the dismissal order.

Oral argument took place on June 17, 2025.  On October 15, 2025, the Third Circuit issued an opinion affirming the district court’s dismissal with prejudice, marking a decisive victory for IIP. The result demonstrates Foley’s prowess in securities class actions and appellate litigation.

Foley’s litigation and appellate team included Todd Murray, Stacy Obenhaus, Andrew Howell, and Christopher DeGennaro, and Stephanie McPhail.