Robbins Arroyo LLP: XOMA Corporation (XOMA) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a securities fraud class action complaint was filed in the U.S. District Court for the Northern District of California. The complaint alleges that officers and directors of XOMA Corporation (NASDAQGM: XOMA) violated the Securities Exchange Act of 1934 between November 6, 2014 and July 21, 2015, by making materially false and misleading statements about XOMA’s business prospects. XOMA discovers and develops antibody-based therapeutics in the United States, Europe, and the Asia Pacific. The company developed gevokizumab, a drug believed to have the potential to address the inflammatory causes of a wide range of diseases with unmet medical needs.
XOMA Misrepresents its Drug Trial
According to the complaint, XOMA initiated three clinical trials to evaluate gevokizumab for the treatment of, among other things, Behcet’s disease uveitis, a multisystem inflammatory disorder most commonly involving the eyes which could lead to blindness. Among the three trials is the Phase 3 EYEGUARD-B study for patients with Behcet’s decease uveitis outside of the United States. The complaint alleges that the company repeatedly made material representations concerning the imminent commercialization of gevokizumab, which in turn artificially inflated the prices of XOMA’s securities. Specifically, the company led investors to believe that the Phase 3 study would be concluded successfully and that approval from the U.S. Food and Drug Administration would then be sought.
On May 28, 2015, XOMA informed the market that it had reached its target exacerbation event as specified in the gevokizumab study, causing an increase in trading and leading to nearly an 8% jump in its share price on the day of the news. However, on July 22, 2015, XOMA revealed that the study did not meet the primary endpoint of first acute ocular exacerbation. On this news, XOMA stock fell $3.48, or over 79%, to open at $0.91 per share on July 22, 2015 on extremely high volume.
XOMA 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.