SAN DIEGO, Nov. 16, 2018 /PRNewswire/ -- Johnson Fistel, LLP announced that a class
action has been commenced on behalf of purchasers of Trevena, Inc.
(NASDAQ:TRVN) common stock during the period between May 2, 2016 and October 9,
2018 (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court
no later December 10, 2018. If you
wish to discuss this action or have any questions concerning this
notice or your rights or interests, please contact Jim Baker at (jimb@johnsonfistel.com) at
619-814-4471. If emailing, please include a phone number. To
view a copy of the complaint [Click here ]
The complaint charges Trevena and certain of its officers and
directors with violations of the Securities Exchange Act of 1934.
Trevena is a clinical stage biopharmaceutical company. The
Company's most advanced drug under development during the Class
Period was Olinvo, an intravenous pain reliever that was undergoing
a Phase III clinical trial for the treatment of moderate-to-severe
postoperative-pain after surgery. According to Trevena, its
Phase II clinical trial for Olinvo had demonstrated that the drug
was superior to the standard of care for post-surgery pain
reduction, morphine.
The complaint alleges that during the Class Period, defendants
made false and misleading statements and/or failed to disclose
adverse information regarding the prospects for Olinvo.
Specifically, defendants failed to disclose that the U.S. Food and
Drug Administration ("FDA") had expressly warned Trevena, prior to
the start of the Class Period, that there were many defects in the
design of its Phase III clinical trial – design defects Trevena
refused to remedy – that threatened to render the data derived in
the Phase III clinical trial worthless. As a result, the
Company's prospects for obtaining FDA approval for commercial
distribution of Olinvo, and its eventual commercial success, were
much lower than defendants had led the market to believe throughout
the Class Period. Based on defendants' material misleading
statements and omissions concerning the strength of its clinical
development program, the design of its Phase III Olinvo clinical
trial and its prospects for obtaining FDA approval to commercially
distribute Olinvo, the price of Trevena common stock was
artificially inflated during the Class Period to more than
$8 per share.
On February 21, 2017, when the
Company disclosed the results of the Phase III clinical trial of
Olinvo, the data failed to show that Olinvo caused any meaningfully
less adverse effects than morphine. On this news, the price of
Trevena common stock declined 40%, or $3 per share. On October 9, 2018, the FDA made public its prior
criticisms of the design of the Phase III clinical trial and
disclosed that its Advisory Committee was recommending that the FDA
reject the Company's New Drug Application for Olinvo. On this news,
the price of Trevena common stock fell another 64%, or almost
$2 per share, on October 9, 2018.
Then on October 11, 2018, trading
in Trevena common stock was halted on pending news. Later that day,
the Company disclosed that the FDA Advisory Committee had voted
against approving Olinvo. While Trevena contended that "[t]he
FDA [was] not bound by the Advisory Committee's recommendations"
that day, it also acknowledged that the FDA "takes its advice into
consideration when making its decision." When trading
recommenced on October 12, 2018, the
stock price dropped another 7%, closing below $1 per share.
Plaintiff seeks to recover damages on behalf of all purchasers
of Trevena common stock during the Class Period (the "Class").
About Johnson Fistel,
LLP:
Johnson Fistel, LLP is a nationally
recognized shareholder rights law firm with offices in California, New
York, and Georgia. The firm
represents individual and institutional investors in shareholder
derivative and securities class action lawsuits. For more
information about the firm and its attorneys, please visit
https://www.johnsonfistel.com. Attorney advertising. Past results
do not guarantee future outcomes.
Contact:
Johnson Fistel, LLP
Jim Baker, 619-814-4471
jimb@johnsonfistel.com
View original
content:http://www.prnewswire.com/news-releases/johnson-fistel-files-class-action-suit-against-trevena-inc-300752445.html
SOURCE Johnson Fistel, LLP