SAN DIEGO & VANCOUVER, British Columbia--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a class action complaint was filed against ProNAi Therapeutics, Inc. (NASDAQGM: DNAI) in the U.S. District Court for the Southern District of New York. The complaint is brought on behalf of all purchasers of ProNAi securities between July 15, 2015 and June 6, 2016, for alleged violations of the Securities Exchange Act of 1934 by ProNAi's officers and directors. ProNAi, a clinical-stage oncology company, develops and commercializes drugs based on its DNA interference technology platform for patients with cancer and hematological malignancies. The company's product candidate, PNT2258, was designed to target cancers that overexpress B-cell lymphoma, such as Diffuse Large B-cell Lymphoma ("DLBCL").
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ProNAi Accused of Misrepresenting the Efficacy of Its Drug
According to the complaint, ProNAi submitted several filings with the U.S. Securities and Exchange Commission in which it represented that PNT2258 was effective, safe, and capable of approval by the U.S. Food and Drug Administration. ProNAi touted PNT2258's purported abilities, stating that it is envisioned "to deliver extraordinary therapeutic outcomes that dramatically change patients' lives" and is being clinically developed pursuant to a company strategy "that is designed to efficiently achieve regulatory approval and maximize the commercial opportunity of PNT2258." The complaint alleges, however, that these statements were false and misleading because PNT2258 was not, and never would be, an effective treatment for DLBCL. The complaint further states that ProNAi officials were aware that one of the company's Phase 2 trials was underperforming, that patients were discontinuing participation in the other trial, and that neither of the Phase 2 trials would meet their primary or secondary endpoints.
As ProNAi's two Phase 2 trials progressed, four members of the company's board of directors, along with the Chief Scientific Officer and Chief Medical Officer, inexplicably resigned. Then, on June 6, 2016, ProNAi announced interim data for the two Phase 2 trials and revealed that since PNT2258 had failed to produce sufficient efficacy results to justify its continued clinical development, the company was suspending the studies. On this news, ProNAi's stock fell from a closing price of $6.38 per share on June 3, 2016, to close at $2.07 per share on June 6, 2016, a loss of more than 67%.
ProNAi 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, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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