This decision affirms dismissal of a 10b-5 securities complaint, holding that the complaint did not adequately allege falsity or loss causation.  The alleged omission concerned the results of a stage 1 drug trial for a cancer treatment drug.  Nektar reported that the drug increased cancer-fighting T cells by 30 times in the stage one test group of 10 patients.  Plaintiffs alleged that the statement was misleading because the increase was so high largely because of a single “outlier” patient who showed a vast increase, while nine other patients showed only modest increases.  The complaint failed to explain what the test results would have shown without the outlier data or how those test results would have affected the investing public’s perception of the drug.  The complaint also failed to show loss causation because stock price fell based on disappointing results of a stage two trial, not as a result of any revelation of true information that had previously been misrepresented in reporting stage one results.