A securities class action lawsuit has been filed against a pharmaceutical company following allegations that the Maryland-based firm violated securities laws by making materially false and/or misleading statements.
The class action suit against Northwest Biotherapeutics Inc. was filed in the U.S. District Court for the District of Maryland on behalf of individuals who purchased securities in the firm during the class period between March 8, 2013 and Aug. 20, 2015, according to a press release.
The lawsuit alleges that Northwest Biotherapeutics made false and/or misleading statements and failed to disclose material adverse facts about its business, prospects and operations. The class action filing claims that the defendants’ positive statements concerning its DCVax-Direct trial were based on preliminary and unconfirmed trial results.
“Through the summer of 2014 leaked news negatively affected the company’s securities.”
The trial results in question had not been reviewed or analyzed by the hospitals that conducted them. The company’s statements on the DCVax-Direct trial were based on patient case report forms provided by hospitals only because the company had sponsored the trial. The company also allegedly failed to disclose that in order for the trial to continue uninterrupted German regulators required additional information.
Additionally, the securities class action suit claims that Northwest Biotherapeutics ran an aggressive promotional campaign for its stock that involved promoters utilizing false identities and credentials.
Throughout the summer of 2014 news leaked on the pharmaceutical firm’s promotional tactics, which affected the company’s securities negatively. Then, the following year, on Aug. 21, before the market opened, it was disclosed that Northwest Biotherapeutics’ Phase 3 DCVax-L brain cancer treatment clinical trial in Germany had been placed on hiatus. Later the same day, the firm stated that new screening of patient candidates for the trial had been similarly halted while the company submitted information for review.
On news of the temporarily suspended German trials Northwest Biotherapeutics stock prices fell $1.92, or 21.62 percent to close at $6.96 on Aug. 21.
For more information on this case or other class action litigations, please contact Adam Foulke at 203-987-4949 or firstname.lastname@example.org.