A securities class action was filed against a biopharmaceutical company following allegations that it violated federal securities laws.
The lawsuit against NewLink Genetics Corporation was filed in the U.S. District Court for the Southern District of New York on behalf of investors who purchased shares in the company during the class period between Sept. 17, 2013 and May 9, 2016, according to a press release. NewLink discovers, develops and sells immunotherapeutic products to assist the treatment of cancer patients. One of the company’s primary products is algenpantucel-L. This drug was developed for pancreatic cancer patients.
“The drug failed to improve survival time among pancreatic cancer patients.”
The class action complaint alleged that the defendants made false and/or misleading statements. In addition, the lawsuit claimed that NewLink failed to disclose material adverse facts connected to its operations and business. Specifically, the class action suit alleged algenpantucel-L was both inadequate and possibly even dangerous to patients. As a result of this, the lawsuit claimed that the biopharmaceutical company’s public statements were false and misleading through the class period.
On May 9, 2016, NewLink’s phase III study revealed that algenpantucel-L failed to achieve what it was supposed to: Stimulate patients’ immune systems, as well as pinpoint and kill cancer cells. In fact, the study disclosed the drug failed to improve survival time among pancreatic cancer patients relative to standard treatments. Patients treated with algenpantucel-L had a median survival time of 27.3 months during the phase III trial. The median survival time of patients in traditional therapies is 30.4 months.
On this news, NewLink stock fell $5.05 per share, or 30.61 percent, to close at $11.45 on May 10, 2016.
For more information on this case or other class action litigations, please contact Adam Foulke at 203-987-4949 or email@example.com.