Robbins Arroyo LLP Is Investigating the Officers and Directors of DURECT Corporation on Behalf of Shareholders
Robbins Arroyo LLP is investigating whether certain officers and directors of the pharmaceutical company, DURECT Corporation (NasdaqGM: DRRX), breached their fiduciary duties to shareholders.
DURECT Painkiller Posidur™ Cannot Be Approved by the U.S. Food and Drug Administration
On February 12, 2014, DURECT announced that the U.S. Food and Drug Administration (“FDA”) issued a Complete Response Letter for Posidur, a post-surgical analgesia that is administered directly to the surgical site. As stated in DURECT’s press release, “the FDA has determined that they cannot approve the NDA [New Drug Application] in its present form, stating the NDA does not contain sufficient information to demonstrate that POSIDUR is safe when used in the manner described in the proposed label, and the FDA has indicated that additional clinical safety studies need to be conducted.” Following this announcement, DURECT shares fell $0.40 per share to $1.55, or more than 20.51% on February 13, 2014.
In light of this news, Robbins Arroyo LLP is investigating whether DURECT’s board of directors breached its fiduciary duties to shareholders by failing to implement adequate internal controls to ensure that DURECT complied with all FDA new drug requirements.
DURECT Shareholders Have Legal Options
Robbins Arroyo LLP highlights that DURECT shareholders have the option to pursue a shareholder litigation demand or shareholder derivative action through which shareholders aim to hold insider wrongdoers accountable for their actions, prevent future misconduct, and bring long-term value back to the company.
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.