Saxena White P.A. Files New Securities Fraud Class Action Complaint Against Portola Pharmaceuticals, Inc. with Expanded Class...
February 07 2020 - 6:00PM
Saxena White P.A. has filed a securities fraud class action lawsuit
in the United States District Court for the Northern District of
California against Portola Pharmaceuticals, Inc. (“Portola” or the
“Company”) (NASDAQ: PTLA), and certain of its executive officers,
(collectively, “Defendants”) on behalf of all persons or entities
who purchased or otherwise acquired Portola common stock between
May 8, 2019 and January 9, 2020, inclusive (the “Class Period”). A
previous securities fraud class action complaint filed against
Portola asserted an abbreviated class period of November 5, 2019
through January 9, 2020.
If you purchased Portola common stock during the
Class Period and wish to apply to be lead plaintiff, a motion on
your behalf must be filed with the Court by no later than March 16,
2020. You may contact David Kaplan (dkaplan@saxenawhite.com), an
attorney and Director at Saxena White P.A., to discuss your rights
regarding the appointment of lead plaintiff or your interest in the
class action. You may also retain counsel of your choice and need
not take any action at this time to be a class member.
Portola is a biopharmaceutical company that
develops and commercializes treatments for thrombosis and other
hematologic diseases. Its lead product is Andexxa, marketed as
Ondexxya in Europe. Andexxa is for patients treated with
rivaroxaban or apixaban, when anticoagulation needs to be reversed
due to life-threatening or uncontrolled bleeding.
The Complaint asserts claims against Defendants
for violations of Sections 10(b) and 20(a) of the Securities
Exchange Act of 1934. As alleged in the Complaint, during the
Class Period, the Company misleadingly touted Andexxa’s revenues
and future prospects – calling it one of the most successful drug
launches in history and hailing the Company’s purportedly
exceptional execution on the Andexxa launch as the catalyst for
continued robust revenue growth. However, the Company failed
to warn investors of significant risks and trends that had already
materialized and were known to Defendants. While Portola
emphasized “strong demand for Andexxa,” “deepening utilization
within existing accounts” at hospitals, and broad usage for the
drug in a variety of medical situations, in reality, the opposite
was true. As the Company knew but concealed from investors,
the “strong demand” for Andexxa simply did not exist. Among
other things, Andexxa’s astronomically high wholesale price of up
to $49,500 per dose forced many of Portola’s clients to perform
utilization reviews of Andexxa’s cost effectiveness as a
treatment. Consequently, a number of clients had drastically
“curtailed use of Andexxa following drug utilization
reviews.” This caused Andexxa’s quarterly sales growth to
Tier 1 hospitals, Portola’s most important accounts, to collapse to
zero or “flat.”
The truth emerged on January 9, 2020, when
Portola announced preliminary net revenues of $28 million for the
fourth quarter of 2019, which missed analysts’ consensus estimates
of $41 million by more than 30%. Portola executives were
forced to admit that Andexxa demand was falling dramatically due to
“typical” hospital utilization reviews and the short shelf life of
a version of the product. In addition, the Company disclosed
that it was taking a substantial charge of $5 million for unused
and returned Andexxa product previously recognized as revenue and
incorporated into Portola’s revenue growth numbers, largely
stemming from selling a version of Andexxa with an ultra-low shelf
life of as little as six months. On this news, the Company’s
share price plummeted by $9.98, or approximately 40%, to close at
$14.76 per share on January 10, 2020.
You may obtain a copy of the Complaint and
inquire about actively joining the class action at
www.saxenawhite.com.
Saxena White P.A., with offices in Florida, New
York, and California, concentrates its practice on prosecuting
securities fraud and complex class actions on behalf of
institutions and individuals. Currently serving as lead counsel in
numerous securities fraud class actions nationwide, the firm has
recovered hundreds of millions of dollars on behalf of injured
investors and is active in major litigation pending in federal and
state courts throughout the United States.
CONTACT INFORMATIONDavid
Kaplan, Esq.dkaplan@saxenawhite.com Saxena White P.A.12750 High
Bluff Drive, Suite 475San Diego, CA 92130Tel: (858) 987-0860 Fax:
(858) 369-0096www.saxenawhite.com
Portola Pharmaceuticals (NASDAQ:PTLA)
Historical Stock Chart
From Mar 2024 to Apr 2024
Portola Pharmaceuticals (NASDAQ:PTLA)
Historical Stock Chart
From Apr 2023 to Apr 2024