SAN DIEGO (Legal Newsline) - A biotechnology company is being sued by investors for allegedly making false financial statements, causing its stock to be traded at an inflated price.
Gail Fialkov filed the lawsuit on July 2 in U.S. District Court Southern District of California against Celladon Corp. and its executives, claiming it lied to investors about the state of one of its clinical trials.
The company focuses on the development of cardiovascular gene therapy and calcium dysregulation. MYDICAR is Celladon's product looks to correct an enzyme deficiency in patients that have heart failure.
In April, the company announced one of the phases of a trial using MYDICAR failed to meet its primary or secondary goals, the suit says. Stock prices fell 80 percent, or $11.04 per share, to close at $2.64 per share, the suit says.
In June, Chief Executive Officer Krisztina Zsebo, one of the named defendants, resigned, and later in the month the company announced it would be suspending further research plans of MYDICAR on June 26. After the announcement was made, Celladon stock dropped to $1.35 per share at closing.
The lawsuit seeks class action status for those who held stock in Celladon between July 7, 2014, and June 25. The suit seeks an unspecified amount in damages.
Fialkov is represented by David C. Walton of Robbins Geller Rudman & Dowd LLP in San Diego.
U.S. District Court for the Southern District of California case number 3:15-cv-01458.