A Celgene class action lawsuit has been filed on behalf of individuals who invested in the biopharmaceutical company after it allegedly made false and misleading statements, potentially leading some investors to purchase Celgene stocks at artificially inflated prices. If you invested in Celgene Corporation between September 12, 2016 and February 27, 2018, you may be able to pursue a claim with the help of a securities fraud attorney.
For more information, contact Attorney Group today. Our consultations are free, confidential and without any obligation on your part. We can help answer your questions, and if you choose to pursue a claim we can connect you with an affiliated securities fraud attorney who can assist you throughout the legal process.
Company Failed to Disclose Design Defects of Crohn’s Disease Treatment
According to a class action complaint filed on March 29, 2018, Celgene Corporation allegedly made false and misleading statements between September 12, 2016 and February 27, 2018. Celgene Corporation is a biopharmaceutical company that specializes in the discovery, development and commercialization of medicines used to treat cancer and inflammatory disorders. The company is headquartered in Summit, New Jersey.
The plaintiff claims that Celgene violated Federal Securities Laws, and that between September 12, 2016 and February 27, 2018, the company failed to disclose that trials for a therapy used to treat Crohn’s disease (known as GED-0301) suffered from fatal design defects and that the treatment failed to demonstrate meaningful clinical efficacy. As a result, there was an allegedly undisclosed risk and high likelihood that Celgene would be unable to develop GED-0301 into a commercially viable treatment for Crohn’s disease.
Likewise, Celgene failed to disclose that the growth of Otezla sales had slowed considerably during the company’s third fiscal quarter of 2017 and that the clinical and nonclinical pharmacology data in the company’s new drug application for Ozanimod, an investigational immunomodulatory drug, were insufficient to permit a complete review by the U.S. Food and Drug Administration (FDA). The FDA then issued a refusal to file letter to Celgene regarding the new drug application.
Reported Impact on Celgene’s Stock Prices as a Result of the Company’s Alleged Fraud
As a result of the alleged false statements and/or omissions made by Celgene Corporation, the price of Celgene stock was artificially inflated between September 12, 2016 and February 27, 2018, to over $145 per share. Shares of the company’s stock reportedly fell to as low as $84.95 per share in late March 2018.
| Stock price per share on September 25, 2017 (prior to disclosures): | Stock price per share on March 23, 2018 (after disclosures): | Stock price decrease as a result of disclosures (percentage): |
|---|---|---|
| $146.13 | $84.95 | 41.87 percent |
How a Celgene Class Action Lawsuit Can Help
Individuals who invested money and purchased stock in Celgene Corporation between September 12, 2016 and February 27, 2018, may be eligible to pursue damages and recover their losses through a Celgene class action lawsuit and are encouraged to seek the advice of an experienced securities fraud attorney to learn more about their rights and remedies.
The Time You Have to Pursue a Claim is Limited. Contact Us Today.
For more information, contact Attorney Group. You can fill out the form on this page or contact us by phone or email.
After you contact us, an attorney will follow up to answer questions that you might have. There is no cost or obligation to speak with us, and any information you provide will be kept confidential.
Please note that the law limits the time you have to pursue a claim or file a lawsuit for an injury. If you think you have a case, you should not delay taking action. Please also note, the deadline to file for lead plaintiff in this class action is May 28, 2018. You must file an application to be appointed lead plaintiff to this deadline in order to be considered by the court.
