SAN DIEGO--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP reminds investors that a purchaser of Karyopharm Therapeutics Inc. (NASDAQ: KPTI) filed a class action complaint for alleged violations of the Securities Exchange Act of 1934 between March 2, 2017 and February 22, 2019, and the Securities Exchange Act of 1933 for conduct related to the company's public offerings on April 28, 2017 and May 7, 2018. Karyopharm is a clinical-stage pharmaceutical company focused on the development of drugs for the treatment of cancer. Selinexor is Karyopharm's lead drug candidate for the treatment of various cancers.
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Karyopharm Therapeutics Inc. (KPTI) Accused of Misleading Investors
According to the complaint, in March 2017, Karyopharm reported that its interim results from its SORPA study of selinexor did not reach statistical significance for overall survival among AML patients, the primary endpoint of the study. As a result, Karyopharm halted the trial, but assured investors that there were "no new clinically significant adverse events in the patients receiving selinexor." Throughout the relevant period, Karyopharm continued to tout the safety and commercial prospects of selixinor, assuring that it was "well tolerated" by patients. Despite these material misrepresentations and omissions, the truth was finally revealed on February 22, 2019, when the FDA released a briefing document expressing serious concerns about the safety of selixinor, stating in relevant part that the SORPA trial's results actually showed "worse overall survival" for patients due to its toxicity, giving it limited efficacy. On this news, Karyopharm's stock price declined $3.90, or more than 43% to close at $5.07.
Karyopharm Therapeutics Inc. (KPTI) Shareholders Have Legal Options
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