On April 7, 2017, Pomerantz LLP was appointed Lead Counsel in a class action lawsuit filed against Seattle Genetics Inc. (“Seattle Genetics” or the “Company”) and certain of its officers. The class action, filed in United States District Court, Western District of Washington, and docketed under 17-cv-00041, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired Seattle Genetics securities between October 27, 2016 and December 23, 2016, both dates inclusive (the “Class Period”), seeking to recover compensable damages caused by defendants’ violations of the Securities Exchange Act of 1934.
Seattle Genetics develops and commercializes targeted therapies for the treatment of cancer worldwide. Among the Company’s products in development is SGN-CD33A (vadastuximab talirine). Throughout the Class Period, vadastuximab talirine was in clinical trials for various applications, including, in relevant part: (i) a Phase 1/2 trial in patients with acute myeloid leukemia (AML) as a pre-conditioning regimen prior to an allogenic stem cell transplant and as a maintenance therapy following transplant; (ii) a Phase 1 trial evaluating vadastuximab talirine monotherapy, including a subset of older AML patients in combination with hypomethylating agents; and (iii) a Phase 1 trial evaluating vadastuximab talirine combination treatment with 7+3 chemotherapy in newly diagnosed younger AML patients.
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) vadastuximab talirine presents a significant risk of fatal hepatotoxicity; (ii) as such, Seattle Genetics had overstated the viability of vadastuximab talirine as an AML treatment; and (iii) as a result of the foregoing, Seattle Genetics’ public statements were materially false and misleading at all relevant times.
On December 27, 2016, Seattle Genetics issued a press release and filed a Current Report on Form 8-K with the SEC, announcing that the U.S. Food and Drug Administration had placed a clinical hold or partial clinical hold on several early stage trials of the Company’s experimental cancer drug, vadastuximab talirine, to evaluate the potential risk of hepatotoxicity.
On this news, Seattle Genetics’ share price fell $9.50, or 15.36 %, to close at $52.36 on December 27, 2016.