Shareholder rights law firm Robbins LLP announces that a purchaser of ChemoCentryx, Inc. (NASDAQ: CCXI) filed a class action complaint against the Company and its officers and directors for alleged violations of the Securities Exchange Act of 1934 between November 26, 2019 and May 3, 2021. ChemoCentryx is biopharmaceutical company that develops and commercializes new medications targeting inflammatory disorders, autoimmune diseases, and cancer. ChemoCentryx's lead drug candidate is avacopan, which the Company describes as a "potential first-in-class, orally-administered molecule for the treatment of patients with ANCA vasculitis."
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ChemoCentryx, Inc. (CCXI) Misled Investors Regarding the Company's Concerns for User Safety
According to the complaint, after the market closed on November 25, 2019, ChemoCentryx announced "Positive Topline Data from Pivotal Phase III ADVOCATE Trial Demonstrating Avacopan's Superiority Over Standard of Care in ANCA-Associated Vasculitis." The announcement stated that the ADVOCATE Phase III Trial "met both of its primary endpoints," and that "[t]he topline safety results revealed an acceptable safety profile in this serious and life-threatening disease." Further, the Company's President, CEO, and Chairman of the Board of Directors, stated that these results exceeded the Company's expectations and "demonstrated that a highly targeted therapy aimed at the very center of the ANCA disease process is superior to the tradition approach…" On this news, ChemoCentryx shares soared from their November 25, 2019 close of $8.06 per share to a November 26, 2019 opening price of $34.82.
During the class period, defendants repeatedly touted the results of the ADVOCATE Phase III trial and the efficacy of avacopan for the treatment of ANCA-associated vasculitis. In July 2020, ChemoCentryx announced that it had file its New Drug Application ("NDA") for avacopan and in September 2020, it announced that the U.S. Food and Drug Administration ("FDA") had accepted the NDA for review.
Then, on May 4, 2021, the FDA published a Briefing Document concerning avacopan's NDA, which noted "questions about the interpretability of the data to define a clinically meaningful benefit of avacopan and its role in the management of AAV." The Briefing Document further stated, "the review team has identified several areas of concern, raising uncertainties about the interpretability of these data and the clinical meaningfulness of these results…" On this news, shares of ChemoCentryx plummeted over 45% to close at $26.63 per share on May 4, 2021.
If you purchased shares of ChemoCentryx, Inc. (CCXI) between November 26, 2019 and May 3, 2021, you have until July 6, 2021, to ask the court to appoint you lead plaintiff for the class. If you would like more information regarding your rights, please contact Lauren Levi at (800) 350-6003 or firstname.lastname@example.org, or via our Shareholder Information Form.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
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