SAN FRANCISCO (Legal Newsline) - A biotechnologies company in California is being sued for allegedly misleading investors about a study it was conducting.
Jeffrey Galerman filed the lawsuit July 13 in U.S. District Court in California against Avalanche Biotechnologies.
The company focuses on developing treatments for age-related macular degeneration. The company was testing a product that would treat the disease with a “subretinal injection.” It recently completed Phase 2a of the clinical study.
An initial public offering in July 2014, and raised more than $100 million in the stock offering. The company executives issued statements claiming the Phase 2a clinical study had two endpoints including safety and other health-related improvements.
“(Avalanche) failed to disclose or indicate that Phase 2a of the...study was not designed to show any statistical significance between the active and control groups in the secondary endpoints,” the lawsuit said.
When Avalanche announced the results of its Phase 2a study on June 15, stock fell $21.83 per share to close at $17.05 on June 16, which the lawsuit claims damaged investors.
The lawsuit seeks class status for those who purchased Avalanche stock. The suit also seeks an unspecified amount in damages.
Galerman is represented by the Pomerantz LLP law firm including attorney Jennifer Pafiti in Beverly Hills; Jeremy A. Lieberman, J. Alexander Hood II, and C. Dov Berger in New York City; and Patrick V. Dahlstrom in Chicago.
U.S. District Court of the Northern District of California case number 5:15-cv-032310BLF.