Johnson Fistel Files Class Action Suit Against Trevena, Inc.
SAN DIEGO- PRNewswire —November 16, 2018
Johnson Fistel, LLP announced that a class action has been commenced on behalf of purchasers of Trevena, Inc. (NASDAQ:TRVN) common stock during the period between May 2, 2016 and October 9, 2018 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later December 10, 2018. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Jim Baker at ([email protected]) at 619-814-4471. If emailing, please include a phone number.
The complaint charges Trevena and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Trevena is a clinical stage biopharmaceutical company. The Company’s most advanced drug under development during the Class Period was Olinvo, an intravenous pain reliever that was undergoing a Phase III clinical trial for the treatment of moderate-to-severe postoperative-pain after surgery. According to Trevena, its Phase II clinical trial for Olinvo had demonstrated that the drug was superior to the standard of care for post-surgery pain reduction, morphine.
The complaint alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding the prospects for Olinvo. Specifically, defendants failed to disclose that the U.S. Food and Drug Administration (“FDA”) had expressly warned Trevena, prior to the start of the Class Period, that there were many defects in the design of its Phase III clinical trial – design defects Trevena refused to remedy – that threatened to render the data derived in the Phase III clinical trial worthless. As a result, the Company’s prospects for obtaining FDA approval for commercial distribution of Olinvo, and its eventual commercial success, were much lower than defendants had led the market to believe throughout the Class Period. Based on defendants’ material misleading statements and omissions concerning the strength of its clinical development program, the design of its Phase III Olinvo clinical trial and its prospects for obtaining FDA approval to commercially distribute Olinvo, the price of Trevena common stock was artificially inflated during the Class Period to more than $8 per share.
On February 21, 2017, when the Company disclosed the results of the Phase III clinical trial of Olinvo, the data failed to show that Olinvo caused any meaningfully less adverse effects than morphine. On this news, the price of Trevena common stock declined 40%, or $3 per share. On October 9, 2018, the FDA made public its prior criticisms of the design of the Phase III clinical trial and disclosed that its Advisory Committee was recommending that the FDA reject the Company’s New Drug Application for Olinvo. On this news, the price of Trevena common stock fell another 64%, or almost $2 per share, on October 9, 2018.
Then on October 11, 2018, trading in Trevena common stock was halted on pending news. Later that day, the Company disclosed that the FDA Advisory Committee had voted against approving Olinvo. While Trevena contended that “[t]he FDA [was] not bound by the Advisory Committee’s recommendations” that day, it also acknowledged that the FDA “takes its advice into consideration when making its decision.” When trading recommenced on October 12, 2018, the stock price dropped another 7%, closing below $1 per share.
Plaintiff seeks to recover damages on behalf of all purchasers of Trevena common stock during the Class Period (the “Class”).
About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit https://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.