Robbins Arroyo LLP: NewLink Genetics Corporation (NLNK) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against NewLink Genetics Corporation (NASDAQ: NLNK) in the U.S. District Court for the Southern District of New York. The plaintiff brings the complaint on behalf of all purchasers of NewLink securities between September 17, 2013 and May 9, 2016, for alleged violations of the Securities Exchange Act of 1934 by certain officers and directors. NewLink is a biopharmaceutical company that focuses on discovering, developing, and commercializing immunotherapeutic products to enhance treatment options for cancer patients.
NewLink Accused of Misrepresenting the Safety and Effectiveness of Lead Product
According to the complaint, certain officers and directors of NewLink made materially false and misleading statements regarding the Company’s business, operational and compliance policies throughout the class period. In particular, the complaint alleges that NewLink continuously touted the effectiveness and favorable safety profile of the company’s lead product candidate, algenpantucel-L, an immunotherapeutic pancreatic cancer treatment. As a result of such public statements, stock price traded at artificially high levels throughout the class period.
In contrast to the continued positive statements concerning the safety and effectiveness of algenpantucel-L, on May 9, 2016, NewLink announced that algenpantucel-L failed to achieve the primary endpoint of the company’s Phase 3 Immunotherapy for Pancreatic Resectable cancer study. Patients treated with algenpantucel-L had a shorter medium survival rate than patients treated with standard therapy, suggesting that patients were harmed by NewLink’s treatment. On this news, NewLink’s stock price fell 30.61%, to close at $11.45 on May 10, 2016.
NewLink 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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