Robbins Arroyo LLP: Seattle Genetics, Inc. (SGEN) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP, announces that a class action complaint was filed against Seattle Genetics, Inc. (“Seattle Genetics”) (NASDAQGS: SGEN) in the U.S. District Court for the Western District of Washington at Seattle. The complaint is brought on behalf of all purchasers of Seattle Genetics securities between October 27, 2016 and December 23, 2016, for alleged violations of the Securities Exchange Act of 1934 by Seattle Genetics’ officers and directors. Seattle Genetics, a biotechnology company, develops and commercializes targeted therapies for the treatment of cancer worldwide. Among the company’s products in development is SGN-CD33A (“33A”), also known as vadastuximab talirine, which is designed to treat patients with acute myeloid leukemia (“AML”).
Seattle Genetics Accused of Lying About the Efficacy of Its Product
According to the complaint, in a series of public filings, Seattle Genetics touted progress in the company’s early stage trials of 33A, advising investors that the company would present data at the 59th American Society of Hematology Annual Meeting. On December 3, 2016, Seattle Genetics announced that 33A was well-tolerated, with a low early mortality rate, and that based on these promising data, the company planned to initiate a phase 2 trial in 2017 to further evaluate the potential benefit of the drug. The company further stated, “The phase 1 results of 33A in combination with standard of care show a high rate of remissions in younger newly diagnosed AML patients without significantly adding to the toxicity of the treatment.” The company also noted that no significant hepatotoxicity was observed on treatment. Subsequently, Seattle Genetics stated in a press release, “We are pleased with the growing body of data demonstrating that [33A] has a promising overall tolerability and activity profile…”
However, the complaint alleges that Seattle Genetics officials did not disclose that 33A presented a significant risk of fatal hepatotoxicity, and that Seattle Genetics had overstated the viability of 33A as an AML treatment. The truth came to light on December 27, 2016, when Seattle Genetics revealed that the U.S. Food and Drug Administration had placed a clinical hold, or partial clinical hold, on several early stage trials of 33A to evaluate the potential risk of hepatotoxicity. The company stated that six patients had been identified with hepatotoxicity, including several cases of veno-occlusive disease, with four fatal events. Seattle Genetics further stated that no new studies would be initiated until the clinical holds are lifted. On this news, Seattle Genetics’ stock fell over 15% to close at $52.36 per share on December 27, 2016.
Seattle Genetics 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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