Robbins Arroyo LLP: Tetraphase Pharmaceuticals, Inc. (TTPH) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed in the U.S. District Court for the District of Massachusetts. The complaint alleges that officers and directors of Tetraphase Pharmaceuticals, Inc. (NASDAQGS: TTPH) violated the Securities Exchange Act of 1934 between March 5, 2015 and September 8, 2015, by making materially false and misleading statements about Tetraphase’s business prospects. Tetraphase is a clinical-stage biopharmaceutical company that develops antibiotics for the treatment of serious and life-threatening drug-resistant infections. Its main drug candidate, Eravacycline, is currently in a phase 3 clinical trial program called IGNITE for the treatment of complicated intra-abdominal infections (IGNITE 1) and complicated urinary tract infections (IGNITE 2).
Tetraphase Pharmaceuticals Accused of Lying About Its Product
According to the complaint, Tetraphase misrepresented the efficacy and safety of Eravacycline, and attendant capacity for approval by both the U.S. Food and Drug Administration (“FDA”) and the European Medicines Agency (“EMA”). For example, the company touted the product’s ability to “become the drug of choice for first-line empiric treatment of a wide variety of serious and life-threatening infections”, and that it is “active against multidrug-resistant bacteria in ways that tetracyclines currently on the market or in development are not.” On May 6, 2015, Tetraphase announced in a press release that it would submit a New Drug Application for the FDA and implied the drug would most likely be approved by the FDA by year-end 2015. These overtly positive representations continued in Form 10-Q’s and Form 8-K’s filed with the U.S. Securities and Exchange Commission, as well as in company press releases issued throughout the Class Period.
However, the complaint alleges that Tetraphase management was in constant communication with the FDA regarding the status of the IGNITE 2 trial and knew that Eravacycline was underperforming when compared to Levofloxacin, an approved antibiotic for complicated urinary tract infections On September 8, 2015, Tetraphase issued a press release disclosing that Eravacycline had failed to achieve its primary endpoint of statistical non-inferiority compared to Levofloxacin under the guidelines established by both the FDA and EMA. On this news, Tetraphase stock fell $36.42 per share, or more than 80%, to close at $8.36 per share on September 10, 2015.
Tetraphase Pharmaceuticals 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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