SAN DIEGO & DURHAM, N.C.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a class action complaint was filed against Argos Therapeutics, Inc. (NASDAQGM: ARGS) in the U.S. District Court for the Middle District of North Carolina. The complaint is brought on behalf of all purchasers of Argos securities between February 7, 2014 and February 21, 2017, for alleged violations of the Securities Exchange Act of 1934 by Argos's officers and directors. Argos focuses on the development and commercialization of individualized immunotherapies for the treatment of cancer and infectious diseases in North America. Argos's most advanced product candidate, known as AGS-003, is designed to treat metastatic renal cell carcinoma ("mRCC") and other cancers.
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Argos Accused of Overinflating the Potential of Its Drug Trial
According to the complaint, in January 2013, Argos initiated an ADAPT Phase 3 clinical trial to evaluate AGS-003 for the treatment of mRCC. Argos subsequently issued a press release stating that its Phase 2 trial for AGS-003 showed a statistically significant correlation between the magnitude of the immune response and overall survival, and that AGS-003 was the only drug the company was aware of to show this effect with statistical significance. Argos continued to portray a positive outlook for AGS-003, stating that the company was pleased with the progress of the Phase 3 trial and that Argos was well positioned to continue to develop the drug.
However, the complaint alleges that Argos officials failed to disclose that its Arcentis technology platform was not viable and that ADAPT was likely to be discontinued. On February 22, 2017, Argos filed a Form 8-K with the U.S. Securities and Exchange Commission revealing that the Independent Data Monitoring Committee for ADAPT recommended that the study be discontinued for futility, finding that the study was unlikely to show a statistically significant improvement in overall survival. The company further revealed that it would discuss the data with the U.S. Food and Drug Administration and based on those discussions, it will make a determination as to the next steps for the clinical program. On this news, Argos's stock fell by 66% to close at $1.48 per share on February 22, 2017.
Argos 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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