NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Aradigm Corporation (“Aradigm” or the “Company”) (NASDAQ:ARDM) of the March 12, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Aradigm stock or options between July 27, 2017 and January 8, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/ARDM. There is no cost or obligation to you.
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The lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of all those who purchased Aradigm common stock between July 27, 2017 and January 8, 2018 (the “Class Period”). The case, Kheder v. Aradigm Corporation et al, No. 18-cv-00261 was filed on January 11, 2018.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (i) the methodology underlying Aradigm’s Linhaliq Phase III clinical trials was not well tailored to yield consistent efficacy findings or to provide data sufficient to account for discordant efficacy findings; (ii) the endpoint of the Phase III trials—namely, delaying the time to first exacerbation on study therapy compared to placebo over approximately one year of observation—was unlikely to demonstrate a clinically meaningful benefit with respect to a patient population that would likely be taking the drug for a longer duration; (iii) accordingly, these studies were unlikely to support Food and Drug Administration’s (“FDA”) approval of the Linhaliq New Drug Application (“NDA”); and (iv) as a result, Aradigm’s public statements were materially false and misleading at all relevant times.
Specifically, on January 9, 2017, the FDA published briefing documents for the meeting with the Antimicrobial Drugs Advisory Committee on its website stating, in part, that “[r]easons for the discordance in efficacy findings between trials cannot be explained based on the information collected in the two trials.” The FDA also expressed concern as to whether longer exposure to Linhaliq’s active agent, ciprofloxacin, “as would be expected in clinical practice (likely lifelong after starting therapy), would result in additional safety issues and bacterial resistance leading to erosion of efficacy over time.”
On this news, Aradigm’s share price fell from $5.98 per share on January 8, 2018 to a closing price of $3.70 on January 9, 2018 — a $2.28 or a 38.13% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Aradigm’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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