U.S. judge dismisses investor lawsuit against Elan

NEW YORK (Reuters) - A U.S. judge has thrown out a class action lawsuit brought by investors against Elan Corp PLC (ELN.I) and its executives over its multiple sclerosis drug Tysabri.

The plaintiffs in the case accused the company and executives of misrepresentations and omissions regarding the safety, commercial viability and projected market share of the drug Tysabri, causing the company's stock price to be artificially inflated.

In an opinion posted on Friday, U.S. District Judge Richard Holwell, who sits in Federal court in Manhattan, said the plaintiffs in the case had failed to adequately show that Elan and its executives had motive and opportunity to commit fraud.

Holwell said the plaintiffs could file a motion for permission to amend their complaint.

Tysabri, which is made by Biogen Idec Inc (BIIB.O) and Elan, was temporarily suspended from the market in 2005 after some patients developed a potentially deadly brain infection.

It was allowed back on the market in 2006 with certain restrictions after U.S. regulators decided multiple sclerosis patients were willing to accept the risks in return for the potential benefits.

(Reporting by Emily Chasan; Editing by Gary Hill)