Robbins Arroyo LLP: Venaxis, Inc. (APPY) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that an investor of Venaxis, Inc. (NASDAQCM: APPY) has filed a federal securities fraud class action complaint in the U.S. District Court for the District of Colorado. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between March 13, 2014 and January 28, 2015. Venaxis develops and commercializes products for unmet diagnostic and therapeutic needs.
Venaxis Is Accused of Misleading Investors
On January 29, 2015, shares of Venaxis fell $1.49, or more than 73%, to close at $0.55 per share after the company disclosed that the FDA had determined that its APPY1 Test, designed to aid in the identification of patients at low risk for acute appendicitis, “did not meet the criteria for substantial equivalence based on the data and information submitted by the company in its 510(k) submission.”
The complaint alleges that: (i) this disclosure followed many months of positive statements by the company regarding the results of the APPY1 test; (ii) Venaxis made false and/or misleading statements by failing to disclose that the APPY1 test failed to meet the criteria for substantial equivalence based upon data and information submitted by the company in its 510(k) submission; and (iii) the company lacked a reasonable basis to conclude that the results from the APPY1 pivotal study were sufficient to support the US Food and Drug Administration clearance.
Venaxis 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.