Robbins Arroyo LLP: Northwest Biotherapeutics, Inc. (NWBO) 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 U.S. District Court for the District of Maryland. The complaint alleges that officers and directors of Northwest Biotherapeutics, Inc. (NASDAQCM: NWBO) violated the Securities Exchange Act of 1934 between March 8, 2013 and August 20, 2015, by making materially false and misleading statements about Northwest Bio’s business prospects. Northwest Bio is a biotechnology company that discovers and develops immunotherapy products to treat cancer in the United States and internationally. It is involved in the development of DCVax, a platform technology that uses activated dendritic cells to mobilize a patient’s own immune system to attack cancer.
Northwest Bio Accused of Issuing Misleading Statements About its Clinical Trials
According to the complaint, Northwest Bio’s products include DCVax-L, a brain and ovarian cancer treatment undergoing a Phase III trial in Germany, and DCVax-Direct, a treatment for inoperable solid tumor cancers undergoing a Phase I/II clinical trial.
Northwest Bio allegedly touted patients’ initial positive responses in the DCVax-Direct trial prior to the trial concluding. A Northwest Bio official stated, “We are excited to already begin seeing some initial positive responses in such a substantial percentage of DCVax-Direct patients.” However, these statements were misleading because they were based on preliminary and unconfirmed trial results and in turn attempted to portray the company in a positive light when there were no grounds to do so.
On June 19, 2014, TheStreet.com reported that Dr. Aman Buzdar, Vice President of clinical research at MD Anderson – one of the hospitals conducting the DCVax-Direct Trial – issued a stern rebuke to Northwest Bio for making promotional, unjustified claims about results from the DCVax-Direct trial. Buzdar said that the hospitals conducting the study have not reviewed or analyzed data at all because patients are still being enrolled and treated. Buzdar pointed out that the tumor regression could have been due to necrosis caused by inflammation, not a real response to the drug. Then, on July 7, 2014, SeekingAlpha.com published a reported stating that Northwest Bio’s authors have used fake identities and credentials within healthcare or finance.
On August 21, 2015, the company admitted that its DCVax-L trial was suspended while it submitted information from the trial for regulatory review. On this news, Northwest Bio stock fell $1.92, or 2.16%, to close at $6.96 on August 21, 2015.
Northwest Bio 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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