Robbins Arroyo LLP: XBiotech Inc. (XBIT) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against XBiotech Inc. (NasdaqGS: XBIT). The complaint is brought on behalf of all purchasers of XBiotech securities pursuant to the company’s initial public offering (“IPO”) on April 15, 2015, for alleged violations of the Securities Act of 1933 by XBiotech’s officers and directors. XBiotech, a clinical-stage biopharmaceutical company, engages in discovering and developing True Human monoclonal antibodies for treating various diseases. The company’s lead product candidate is known as Xilonix, which is intended to treat advanced colorectal cancer.
XBiotech Accused of Issuing Inaccurate Information About Its Drug Trial
According to the complaint, soon after beginning the Phase III trial for Xilonix in July 2014, XBiotech encountered significant problems with enrolling patients. The company’s registration statement and prospectus issued in connection with the IPO failed to disclose that the company’s stated timeline for completion of the Phase III trial could not be met without drastically increasing the number of clinical sites—which would result in a concomitant increase in the company’s costs—and that the company had already experienced enrollment delays. On July 28, 2015, XBiotech admitted that it would have to push back the timeline for the Phase II trial towards the end of the year and that enrollment was less than the company anticipated, causing the company’s stock to decline over 7.5%. Then, on November 23, 2015, XBiotech revealed numerous “irregularities” in the data obtained in the Phase III trial, which would result in the study having “reduced statistical power to demonstrate the proposed effect.” On this news, XBiotech’s stock declined $4.50 per share, or approximately 34%, to close at $8.75 per share on November 24, 2015.
XBiotech Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.