Securities Class Action Filed Against Orexigen Therapeutics, Inc.
Violations of federal securities laws as a result of a series of materially false statements. The Complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (i) study results released by Orexigen showing that its obesity drug, Contrave, reduced the risk of heart attacks and cardiovascular death, were unreliable and misleading; (ii) as such, Orexigen faced potential fines, civil penalties, and the possible removal of Contrave from the market; and (iii) as a result of the above, the Company’s financial statements were materially false and misleading at all relevant times. According to the Complaint, the Company filed a Form 8-K with the SEC on March 3, 2015, announcing a patent application with the U.S. Patent and Trademark Office, in which it disclosed positive interim results of an ongoing clinical trial of Contrave. As a result of this news, the Company’s shares increased $1.85, or by almost 32%, to close at $7.64 on March 3, 2015. The next day, shares rose $0.85, by more than 11%, to close at $8.49 on March 4, 2015. It is alleged, however, that the interim data published by the Company was particularly unreliable, as noted in numerous articles published after the patent application was filed, including that Takeda, which has an agreement with Orexigen to market Contrave in the United States, released a statement indicating that it did not support the release of the interim data. On the news, shares in Orexigen fell $0.48, or by almost 6%, to close at $8.01 on March 5, 2015. After the close of trading on March 5, 2015, in a report published on Forbes.com, a top Food and Drug Administration (“FDA”) official criticized Orexigen and its decision to release interim trial data. In the report, Dr. John Jenkins, the FDA’s director of the Office of New Drugs, criticized the released data as “unreliable,” “misleading,” and “likely false.” On this news, shares in Orexigen fell by as much as $1.25, or almost 16%, to as low as $6.76 in intra-day trading on March 6, 2015. Filed in S.D. Cal.
Lead Plaintiff Deadline: The deadline to file for lead plaintiff in this action is 5/11/2015.
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