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ChemoCentryx, Inc. Class Action Lawsuit

Company Name
ChemoCentryx, Inc.
Stock Symbol
CCXI
Class Period
November 26, 2019 to May 6, 2021
Motion Deadline
July 4, 2021
Court
Northern District of California
16 days left to seek lead plaintiff status

Case Summary

The ChemoCentryx, Inc. class action lawsuit charges ChemoCentryx and its top executives with violations of the Securities Exchange Act of 1934 and seeks to represent all investors who purchased or otherwise acquired ChemoCentryx common stock between November 26, 2019 and May 6, 2021, inclusive (the “Class Period”).  The first complaint in the ChemoCentryx class action lawsuit was filed on May 5, 2021 in the Northern District of California and is captioned Homyk v. ChemoCentryx, Inc., No. 21-cv-03343.

ChemoCentryx is a biopharmaceutical company focused on the development and commercialization of new medications targeting inflammatory disorders, autoimmune diseases, and cancer.  ChemoCentryx’s lead drug candidate is avacopan, which ChemoCentryx describes as “a potential first-in-class, orally-administered molecule that employs a novel, highly targeted mode of action in the treatment of ANCA vasculitis.”  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.”  In this announcement, ChemoCentryx 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.”  Over the next several months, defendants continued to repeatedly laud the results of the ADVOCATE Phase III trial, as well as the safety profile of avacopan for the treatment of ANCA-associated vasculitis.  On July 9, 2020, ChemoCentryx announced that it had filed its New Drug Application (“NDA”) for avacopan, and on September 17, 2020, the Company announced that the U.S. Food & Drug Administration (“FDA”) had accepted the NDA for review.

The ChemoCentryx class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) the study design of the Phase III ADVOCATE trial presented issues about the interpretability of the trial data to define a clinically meaningful benefit of avacopan and its role in the management of ANCA-associated vasculitis; (ii) the data from the Phase III ADVOCATE trial raised serious safety concerns for avacopan; (iii) these issues presented a substantial concern regarding the viability of ChemoCentryx’s NDA for avacopan for the treatment of ANCA-associated vasculitis; and (iv) as a result of the foregoing, defendants’ public statements were materially false and misleading at all relevant times.

On May 4, 2021, the FDA published a Briefing Document concerning ChemoCentryx’s NDA for avacopan.  In this Briefing Document, the FDA wrote that “[c]omplexities of the study design, as detailed in the briefing document, raise questions about the interpretability of the data to define a clinically meaningful benefit of avacopan and its role in the management of [ANCA-associated vasculitides].”  The FDA Briefing Document continued that “[a]lthough primary efficacy comparisons were statistically significant, the review team has identified several areas of concern, raising uncertainties about the interpretability of these data and the clinical meaningfulness of these results.”  The FDA also raised serious safety concerns with avacopan for the treatment of ANCA-associated vasculitis.  On this news, the price of ChemoCentryx common stock fell approximately 45%.

Then, on May 6, 2021, ChemoCentryx issued a press release revealing that the FDA’s Advisory Committee of independent experts convened to opine on the ADVOCATE Phase III trial was evenly divided as to whether the efficacy data from ADVOCATE supported approval of avacopan.  News outlets and analysts immediately reported on and discussed the fallout from the Advisory Committee meeting.  On this news, the price of ChemoCentryx common stock fell an additional 62%, damaging investors.

The Private Securities Litigation Reform Act of 1995 permits any investor who purchased ChemoCentryx common stock during the Class Period to seek appointment as lead plaintiff in the ChemoCentryx class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the ChemoCentryx class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the ChemoCentryx class action lawsuit.  An investor’s ability to share in any potential future recovery of the ChemoCentryx action lawsuit is not dependent upon serving as lead plaintiff.  If you wish to serve as lead plaintiff of the ChemoCentryx class action lawsuit or have questions concerning your rights regarding the ChemoCentryx class action lawsuit, please provide your information here or contact counsel, Michael Albert of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at malbert@rgrdlaw.com.  Lead plaintiff motions for the ChemoCentryx class action lawsuit must be filed with the court no later than July 6, 2021.

With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions. Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm.

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