Robbins Arroyo LLP: ProNAi Therapeutics, Inc. (DNAI) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against ProNAi Therapeutics, Inc. (NASDAQGM: DNAI) in the Superior Court of the State of California for the County of San Mateo. The complaint is brought on behalf of all purchasers of ProNAi securities pursuant to the company’s July 15, 2015 initial public offering (“IPO”) for alleged violations of the Securities Act of 1933 by ProNAi’s officers and directors. ProNAi, a clinical-stage oncology company, develops and commercializes drugs based on its DNA interference technology platform for patients with cancer and hematological malignancies. The company’s product candidate, PNT2258, was designed to target cancers that overexpress B-cell lymphoma, such as Diffuse Large B-cell Lymphoma (“DLBCL”).
ProNAi Accused of Misrepresenting the Efficacy of Its Drug
According to the complaint, ProNAi held its IPO on July 15, 2015, selling 9,315,000 shares of common stock at a public offering price of $17 per share, receiving net proceeds of approximately $143.6 million. According to ProNAi’s IPO prospectus, the company initiated an open-label 60 patient Phase 2 trial in December 2014 evaluating PNT2258 for the treatment of third-line relapsed or refractory DLBCL. ProNAi further stated that it believed the preliminary evidence of efficacy combined with safety and tolerability data related to PNT2258 suggested that it had the potential to “change treatment paradigms across a wide range of oncology indications.”
However, the complaint alleges that PNT2258 was not as promising as the company had led investors to believe. On June 6, 2016, ProNAi announced interim data for the two Phase 2 trials, revealing that it observed only modest efficacy from PNT2258. ProNAi further announced it would suspend development of PNT2258 pending further review of the data. On this news, ProNAi’s stock fell $4.31 per share, or 67.5%, to close at $2.07 per share on June 6, 2016.
ProNAi 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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