Robbins Arroyo LLP: OvaScience, Inc. (OVAS) Misled Shareholders According to a Recently Filed Class Action
Shareholder rights law firm Robbins Arroyo LLP announces that a class action complaint was filed in the Suffolk County Superior Court for the Commonwealth of Massachusetts. The complaint alleges that officers and directors of OvaScience, Inc. (NASDAQGM: OVAS) violated the Securities Act of 1933 in connection with the company’s January 8, 2015 Secondary Offering (the “Offering”) when they sold 2.3 million shares of common stock at an offering price of $50.00 per share. OvaScience is a life science company that develops and markets new treatments for infertility. Its AUGMENT treatment, designed to improve the health of the woman’s eggs, is available in certain in vitro fertilization (“IVF”) clinics in select international regions.
OvaScience Accused of Misleading Investors About Its Product’s Success Rate
According to the complaint, OvaScience issued a Registration Statement that failed to disclose that the approximately 150 patients that had received its AUGMENT procedure in 2014 did not achieve a pregnancy success rate that was significantly higher than the rate achieved without its AUGMENT procedure. It is alleged that this omission artificially inflated the price of the company’s shares. Although any adverse events associated with the success rate of AUGMENT treatment reasonably likely to have an impact on OvaScience’s profitability were required to be disclosed in the company’s Registration Statement, they were not.
The truth began to emerge on March 26 and 28, 2015, when the company reported results of IVF clinics utilizing the AUGMENT procedure, disclosing a 53% and a 25% success rate, respectively. These success rates were comparable to the success rate achieved for a woman using IVF without AUGMENT. On March 30, 3015, a Wainwright & Co. analyst questioned the company’s AUGMENT data pregnancy rate calculation, stating that an alternative representation of the data would result in a 35% success rate rather than the 53% success rate declared by OvaScience. Then, on April 6, 2015, the Southern Investigative Reporting Foundation published an article that challenged the reported 53% clinical pregnancy rate. The article suggested that the AUGMENT procedure data did not achieve a significant success rate of clinical pregnancies compared to previous rates achieved without the company’s AUGMENT procedure. On September 28, 2015, OvaScience issued a press release announcing that it does not expect to meet the 2015 goal of 1,000 AUGMENT treatment cycles. On this news, OvaScience stock fell by $5.95 per share, or over 40%, to close at $8.57 per share on September 29, 2015. The stock has plummeted by over 77% since its Offering.
OvaScience Shareholders Have Legal Options
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.