Achillion Pharmaceuticals, Inc. Sued by Investors After Stock Drops 58% on Announcement that Clinical Hold of Drug Sovaprevir Will Continue
Robbins Arroyo LLP announces that an investor of Achillion Pharmaceuticals, Inc. (NASDAQ: ACHN) has filed a federal securities fraud class action complaint in the U.S. District Court, District of Connecticut. The complaint alleges that the company and certain of its officers violated the Securities and Exchange Act of 1934 between April 21, 2012 and September 27, 2013 (the “Class Period”).
Achillion Accused of Misleading Investors Regarding Viability of Sovaprevir
Shares of Achillion fell $4.22 per share, or more than 58%, on September 27, 2013, after the company disclosed that the U.S. Food and Drug Administration (“FDA”) continued its clinical hold on sovaprevir, its premier investigative drug for the treatment of hepatitis. This steep decline comes just two months after Achillion experienced an initial 25% decline per share on the announcement that the FDA instituted the clinical hold on July 1, 2013.
According to the complaint, defendants made false and/or misleading statements and failed to disclose material adverse facts about the company’s business, operations, and prospects, including the safety and suitability of sovaprevir. Defendants failed to inform investors that sovaprevir did not interact well with other drugs commonly administered to treat hepatitis and/or HIV, and misled investors to believe that even though patients in the company’s clinical trials for sovaprevir had elevations in liver enzymes, that these liver enzymes elevations were transient and returned to baseline values and were attributable to non-drug-related factors.
If you invested in Achillion and would like to discuss your shareholder rights please contact attorney Darnell R. Donahue at (800) 350-6003 or you can complete the form below and we will contact you directly.
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