Robbins Arroyo LLP: Juno Therapeutics, Inc. (JUNO) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Juno Therapeutics, Inc. (NASDAQGS: JUNO) in the U.S. District Court for the Western District of Washington at Seattle. The complaint is brought on behalf of all purchasers of Juno securities between June 4, 2016 and July 7, 2016, for alleged violations of the Securities Exchange Act of 1934 by Juno’s officers and directors. Juno, a biopharmaceutical company, engages in developing cell-based cancer immunotherapies. Its lead product candidate is known as JCAR015, which is currently in clinical trials.
Juno Therapeutics Accused of Lying About Severe Side Effects of Its Drug
According to the complaint, Juno has admitted that one of the notable side effects of JCAR015 is “severe neurotoxicity.” In May 2016, a patient in the Phase 2 trial of JCAR015 (the “ROCKET” trial) died of a cerebral edema. Despite considering the patient death to be sufficiently serious to consult with its Data Safety Monitoring Board and inform the Food and Drug Administration (“FDA”), the company did not bother to inform investors of the incident. Instead, on June 4, 2016, Juno issued a glowing press release about JCAR015 that understated the risks associated with the drug. The press release omitted the patient death in May altogether, touting “lower side effects in patients with minimal disease at time of CAR T cell infusion,” and making partial, misleading disclosures about side effects, revealing that “Grade 3 or higher neurotoxicity was observed in 15/51 (29%) of patients” in the Phase 1 trial.
Shortly after Juno officials made these misleading statements, several Juno insiders sold their stock. Most notably, the company’s Chief Executive Officer sold over $8.6 million worth of shares in June 2016—more than twice the value of his total sales for all of 2015. In the last week of June, two more patients in the ROCKET trial died of cerebral edemas. In a press release on July 7, 2016, Juno disclosed the patient deaths and revealed that the FDA issued a clinical hold. Juno subsequently disclosed the patient death from May in a conference call with analysts later that day. On this news, Juno stock fell by nearly 32%, closing at $27.81 per share on July 8, 2016.
Juno Therapeutics 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.
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