Robbins Arroyo LLP: ProNAi Therapeutics, Inc. (DNAI) Misled Shareholders According to a Recently Filed Class Action
November 15 2016 - 1:40PM
Business Wire
Shareholder rights law firm Robbins Arroyo LLP announces that a
class action complaint was filed against ProNAi Therapeutics, Inc.
(NASDAQGM: DNAI) in the U.S. District Court for the Southern
District of New York. The complaint is brought on behalf of all
purchasers of ProNAi securities between July 15, 2015 and June 6,
2016, for alleged violations of the Securities Exchange Act of 1934
by ProNAi's officers and directors. ProNAi, a clinical-stage
oncology company, develops and commercializes drugs based on its
DNA interference technology platform for patients with cancer and
hematological malignancies. The company's product candidate,
PNT2258, was designed to target cancers that overexpress B-cell
lymphoma, such as Diffuse Large B-cell Lymphoma ("DLBCL").
View this information on the law firm's Shareholder Rights
Blog:www.robbinsarroyo.com/shareholders-rights-blog/pronai-therapeutics-inc
ProNAi Accused of Misrepresenting the Efficacy of Its
Drug
According to the complaint, ProNAi submitted several filings
with the U.S. Securities and Exchange Commission in which it
represented that PNT2258 was effective, safe, and capable of
approval by the U.S. Food and Drug Administration. ProNAi touted
PNT2258's purported abilities, stating that it is envisioned "to
deliver extraordinary therapeutic outcomes that dramatically change
patients' lives" and is being clinically developed pursuant to a
company strategy "that is designed to efficiently achieve
regulatory approval and maximize the commercial opportunity of
PNT2258." The complaint alleges, however, that these statements
were false and misleading because PNT2258 was not, and never would
be, an effective treatment for DLBCL. The complaint further states
that ProNAi officials were aware that one of the company's Phase 2
trials was underperforming, that patients were discontinuing
participation in the other trial, and that neither of the Phase 2
trials would meet their primary or secondary endpoints.
As ProNAi's two Phase 2 trials progressed, four members of the
company's board of directors, along with the Chief Scientific
Officer and Chief Medical Officer, inexplicably resigned. Then, on
June 6, 2016, ProNAi announced interim data for the two Phase 2
trials and revealed that since PNT2258 had failed to produce
sufficient efficacy results to justify its continued clinical
development, the company was suspending the studies. On this news,
ProNAi's stock fell from a closing price of $6.38 per share on June
3, 2016, to close at $2.07 per share on June 6, 2016, a loss of
more than 67%.
ProNAi 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/20161115006568/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003DDonahue@robbinsarroyo.comwww.robbinsarroyo.com
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