Robbins Arroyo LLP: XBiotech, Inc. (XBIT) Misled Shareholders According to a Recently Filed Class Action
Shareholder rights law firm Robbins Arroyo LLP announces that a class action complaint was filed in the U.S. District Court for the Western District of Texas. The complaint alleges that officers and directors of XBiotech, Inc. (NASDAQGS: XBIT) violated the Securities Exchange Act of 1934 between April 15, 2015 and November 23, 2015, by making materially false and misleading statements about the company’s business prospects. XBiotech is a clinical-stage biopharmaceutical company engaged in discovering and developing True Human monoclonal antibodies for treating various different diseases. XBiotech’s lead product, Xilonix, is currently the subject of two clinical studies for treating patients with advanced colorectal cancer.
XBiotech Accused of Issuing Misleading Statements About its Phase III Study of Xilonix in Europe
According to the complaint, XBiotech made false and misleading statements throughout the class period and failed to disclose material adverse facts about the company’s business, operations, and prospects. In particular, the complaint alleges that XBiotech misled investors by misstating the number of per protocol patients available for primary endpoint evaluation in the company’s pivotal Phase III European study of Xilonix, designed to assess its treatment of colorectal cancer. XBiotech originally proposed enrolling 276 patients, but ultimately enrolled only 220. The complaint also alleges that XBiotech failed to disclose that the data from 72 patients of the Phase III Study was compromised and the company failed to properly sample patients for the study, reducing the statistical power of the study to demonstrate the proposed outcome.
On November 23, 2015, after the market closed, XBiotech issued a press releases revealing that that data for 72 of the 220 patients enrolled in the study was compromised, reducing the statistical to demonstrate the proposed effect. On this news, shares of XBiotech 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 Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.