Robbins Arroyo LLP: PTC Therapeutics, Inc. (PTCT) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against PTC Therapeutics, Inc. (NASDAQGS: PTCT) in the U.S. District Court for the District of New Jersey. The plaintiff brings the complaint on behalf of all purchasers of PTC Therapeutics securities between May 6, 2014 and February 23, 2016, for the alleged violations the Securities Act of 1934 by PTC Therapeutics’ officers and directors. PTC Therapeutics is a biopharmaceutical company that discovers, develops, and commercializes orally administered, small molecule drugs that target post-transcriptional control processes.
PTC Therapeutics Accused of Misleading Investors About its Lead Drug Candidate
According to the complaint, during 2014 through 2015, PTC Therapeutics issued multiple press releases touting the effectiveness of Translarna, the company’s lead drug candidate. The company further stated that its ongoing launch of Translarna across Europe had performed well based on positive feedback from key opinion leaders and physicians. Riding on its European success, in December 2014, PTC began submitting a New Drug Application (“NDA”) to the U.S. Food and Drug Administration (“FDA”) for the approval of Translarna. On February 23, 2016, PTC Therapeutics issued a press release stating that it received a Refuse to File letter from the FDA regarding the company’s NDA for Translarna because “the application was not sufficiently complete to permit a substantive review.” The complaint alleges that the company failed to disclose during the relevant class period that its NDA was insufficiently complete and thus would not be reviewed or approved by the FDA.
On February 23, 2016, JP Morgan Securities downgraded the company’s stock and issued a report that sharply critiqued the company’s transparency regarding Translarna’s NDA and potential for FDA approval. On this news, PTC Therapeutics stock fell $17.42 per share, or over 61%, to close at $10.84 per share on February 23, 2016.
PTC 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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