Pomerantz LLP announces that a class action lawsuit has been filed against Innocoll Holdings Public Limited Company (“Innocoll” or the “Company”) and certain of its officers. The class action, filed in United States District Court, Eastern District of Pennsylvania, and docketed under 17-cv-00740, is on behalf of a class consisting of investors who purchased or otherwise acquired Innocoll securities, seeking to recover compensable damages caused by defendants’ violations of the Securities Exchange Act of 1934.
Innocoll is a global, specialty pharmaceutical company with late stage development programs that is dedicated to engineering better medicines to help patients get better. The Company's proprietary, biocompatible, and biodegradable collagen products are precision-engineered for targeted use. Applied locally to surgery sites, they are designed to provide a range of benefits. The Company's late stage product pipeline is focused on addressing a number of large unmet medical needs.
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company’s lead product XARACOLL for postsurgical pain treatment entailed undisclosed health and safety risks; (ii) consequently, the Company had overstated the drug’s approval prospects and/or commercial viability; and (iii) as a result of the above, the Company’s financial statements were materially false and misleading at all relevant times.
On December 29, 2016, Innocoll announced that it had received a Refusal to File letter from the U.S. Food & Drug Administration (“FDA”) with respect to the Company’s New Drug Application for its lead product candidate XARACOLL, a postsurgical pain treatment. Innocoll stated that the FDA’s letter informed the Company that XARACOLL should have been characterized as a drug/device combination, requiring Innocoll to submit further information.
On this news, Innocoll’s share price fell $1.08, or 61.02%, to close at $0.69 on December 30, 2016.