Robbins Arroyo LLP: Seres Therapeutics, Inc. (MCRB) Misled Shareholders According to a Recently Filed Class Action
October 07 2016 - 03:07PM
Business Wire
Shareholder rights law firm Robbins Arroyo LLP announces that a
class action complaint was filed against Seres Therapeutics, Inc.
(NASDAQGS: MCRB) in the U.S. District Court for the District of
Massachusetts. The complaint is brought on behalf of all purchasers
of Seres securities between June 25, 2015 and July 29, 2016, for
alleged violations of the Securities Exchange Act of 1934 by
Seres's officers and directors. Seres, a microbiome therapeutics
platform company, focuses on the development of biological drugs
designed to restore health by repairing the function of a dysbiotic
microbiome. The company's lead product candidate is SER-109, a
clinical-stage oral microbiome therapeutic designed to prevent
further recurrences of Clostridium difficile infection ("CDI"), a
debilitating infection of the colon.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/seres-therapeutics-inc
Seres Accused of Misrepresenting the Efficacy of Its
Drug
According to the complaint, on September 8, 2014, Seres
announced final data from its Phase 1b clinical trial of SER-109,
which yielded positive results including clinical cures and a
favorable safety profile. Seres proceeded to Phase 2 of the
clinical trial to further evaluate the efficacy of SER-109.
Meanwhile, the company shed SER-109 in a positive light, stating
that it believed SER-109 would enable it "to provide a more
effective and safer treatment for preventing the recurrence of CDI
than the current standard of care." Seres subsequently issued a
press release announcing positive first quarter 2015 financial
results, stating that it had "made significant progress this
quarter to advance our mission of delivering Ecobiotic microbiome
medicines to patients" and that its successful initial public
offering indicated confidence in the company's science and data to
date.
However, the complaint alleges that Seres officials
misrepresented the efficacy of SER-109 and its attendant capacity
for approval by the U.S. Food and Drug Administration, as well as
the structure of the Phase 2 trial. Seres management was allegedly
aware that enrollment rates in the parallel open-label study of
SER-109 were not performing well in the Phase 2 trial, and that
formulation changes had been made to the Phase 2 trial which could
affect the clinical cure rate of SER-109. On July 29, 2016, Seres
disclosed that SER-109 had failed to reach its primary endpoint of
reducing the relative risk of CDI recurrence at up to 8 weeks when
compared to a placebo. Specifically, CDI recurrence occurred in 44%
of subjects who received SER-109, compared to 53% of subjects who
received a placebo. The company further stated that the relative
risk of CDI recurrence for the placebo population compared to the
SER-109 population was not statistically significant. On this news,
Seres stock declined more than 70% to close at $9.73 per share on
August 1, 2016.
Seres Shareholders Have Legal Options
Concerned shareholders who would like more information about
their rights and potential remedies can contact attorney Darnell R.
Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
shareholder rights law. The firm represents individual and
institutional investors in shareholder derivative and securities
class action lawsuits, and has helped its clients realize more than
$1 billion of value for themselves and the companies in which they
have invested.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20161007005751/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003DDonahue@robbinsarroyo.comwww.robbinsarroyo.com
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