Robbins Arroyo LLP: Arrowhead Pharmaceuticals, Inc. (ARWR) Misled Shareholders According to a Recently Filed Class Action
November 23 2016 - 2:26PM
Business Wire
Shareholder rights law firm Robbins Arroyo LLP announces that a
class action complaint was filed against Arrowhead Pharmaceuticals,
Inc. (NASDAQGS: ARWR) in the U.S. District Court for the Central
District of California. The complaint is brought on behalf of all
purchasers of Arrowhead securities between May 11, 2015 and
November 8, 2016, for alleged violations of the Securities Exchange
Act of 1934 by Arrowhead's officers and directors. Arrowhead, a
biopharmaceutical company, develops novel drugs to treat
intractable diseases in the United States. The company's lead
clinical candidate is known as ARC-520, which is designed to treat
chronic hepatitis B virus ("HBV") infection.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/arrowhead-pharmaceuticals-inc
Arrowhead Accused of Overstating Commercial Viability of Its
Drug
According to the complaint, Arrowhead submitted several filings
with the U.S. Securities and Exchange Commission in which the
company discussed its ARC-520 study, stating that there were "no
dose-limiting toxicities or serious adverse events having been
observed to date." The company further stated that ARC-520 was well
tolerated and that it led to robust, sustained anti-viral effects
in chimpanzees with chronic HBV. Arrowhead also noted that 78% of
chronically HBV-infected chimpanzees treated with ARC-520 in
combination with nucleoside analogs exhibited signs of immune
reactivation, a necessary step for achieving a cure of chronic HBV.
The company said that these data strongly support advancement of
ARC-520 into Phase 2 and later-stage clinical studies.
However, the complaint alleges that Arrowhead officials failed
to disclose that: (i) ARC-520 was fatal at certain doses; (ii)
consequently, the U.S. Food and Drug Administration ("FDA") was
unlikely to approve ARC-520 as a hepatitis B treatment; and (iii)
Arrowhead had overstated the approval prospects and commercial
viability of ARC-520. On November 8, 2016, Arrowhead announced that
the FDA would be placing a clinical hold on the company's clinical
study of ARC-520, likely due to deaths at the highest dose of an
ongoing non-human primate toxicology study. On this news, Arrowhead
stock fell $1.91 per share, or 31.26%, to close at $4.20 per share
on November 9, 2016.
Arrowhead 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/20161123005685/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003DDonahue@robbinsarroyo.comwww.robbinsarroyo.com
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