Robbins Arroyo LLP: OvaScience, Inc. (OVAS) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against OvaScience, Inc. (NASDAQGM: OVAS) in the U.S. District Court for the District Massachusetts. The complaint is brought on behalf of all purchasers of OvaScience securities between January 8, 2015 and March 26, 2015, for alleged violations of the Securities Exchange Act of 1934 by OvaScience’s officers and directors. OvaScience, a fertility company, discovers, develops, and commercializes fertility treatment options for women worldwide.
OvaScience Accused of Misleading Shareholders Regarding AUGMENT Therapy
According to the complaint, in a series of filings with the U.S. Securities and Exchange Commission, OvaScience officials made misleading statements regarding AUGMENT, the company’s sole product designed to increase the success rate of in vitro fertilization. The complaint alleges that the therapy was never scientifically validated and that OvaScience failed to achieve an increase in successful in vitro fertilizations. Furthermore, the company allegedly omitted in its public statements that its AUGMENT therapy failed to achieve approval by the U.S. Food and Drug Administration (“FDA”), and instead of continuing to develop AUGMENT to meet FDA standards, OvaScience moved its studies outside of the U.S.
On March 26, 2015, OvaScience issued a press release reporting the company’s results of two clinical trials in Canada and Turkey, stating that company officials were “encouraged by [the] results and believe the AUGMENT treatment may offer a much needed fertility treatment for women who are seeking new options.” However, the efficacy of AUGMENT was called into question when analysts challenged the interpretation of OvaScience’s data, noting that an alternative representation of the data would result in a 35% success rate rather than a 53% success rate as reported by the company. Amid the controversy surrounding OvaScience’s treatment results, Arthur Tzianabos, Ph.D., stepped down from his position as the President and Chief Scientific Officer of OvaScience. Concern amongst investors grew as AUGMENT seemed to have no significant impact on the success rate of in vitro fertilizations. On this news, OvaScience’s stock fell $17.14 per share, or 35%, to close at $31.15 per share on April 1, 2015.
OvaScience Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.