PDF

CytomX Therapeutics, Inc. Class Action Lawsuit

Case Summary

Company Name
CytomX Therapeutics, Inc.
Stock Symbol
CTMX
Class Period
May 17, 2018 to May 13, 2020
Court
Northern District of California

The CytomX Therapeutics, Inc. class action lawsuit charges CytomX and certain of its current and former officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of CytomX securities between May 17, 2018 and May 13, 2020 (the “Class Period”).  The CytomX class action lawsuit was commenced on May 21, 2020 in the Northern District of California and is captioned Knight v. CytomX Therapeutics, Inc., No. 20-cv-03432.

CytomX operates as an oncology-focused biopharmaceutical company that develops a novel class of investigational antibody therapeutics based on its Probody technology platform for the treatment of cancer.  CytomX’s lead product candidates in the clinical-trial stage include, among others, CX-072 and CX-2009, which were being evaluated in CytomX’s “PROCLAIM” series clinical program to assess their tolerability and preliminary antitumor activity.

The CytomX class action lawsuit alleges that defendants made false and misleading statements and/or failed to disclose that: (i) CytomX had downplayed issues with CX-072’s efficacy observed in the PROCLAIM-CX-072 clinical program; (ii) CytomX had similarly downplayed issues with CX-2009’s efficacy and safety observed in the PROCLAIM-CX-2009 clinical program; and (iii) as a result, CytomX’s public statements were materially false and misleading at all relevant times.

On June 4, 2018, CytomX issued a press release announcing preliminary clinical results from two arms of the PROCLAIM-CX-072-001 clinical program regarding trials of CX-072 alone and CX-072 in combination with ipilimumab.  Preliminary results from these study arms showed a 15% response rate and 55% disease control rate for CX-072 alone, and a 25% response rate and 33% disease control rate for CX-072 in combination with ipilimumab.  Following the release of this data, CytomX’s stock price fell more than 16%.

Then, on October 22, 2018, CytomX issued a press release announcing further clinical results from the same two arms of the PROCLAIM-CX-072-001 clinical trial.  The results showed an 8% response rate and 47% disease control rate for CX-072 alone, and a 21% response rate and  43% disease control rate for CX-072 in combination with ipilimumab.  On this news, CytomX’s stock price fell more than 3%.

Finally, on May 13, 2020, CytomX made available abstracts for CytomX’s clinical presentations for CX-072 and CX-2009. Results from the PROCLAIM-CX-072 clinical program showed a response rate of 8.8%, compared to a response rate of 18.5% in patients receiving the combination of CX-072 and ipilimumab.  Meanwhile, results from the PROCLAIM-CX-2009 clinical program showed “evidence” of clinical activity at doses at least 4mg/kg 3x/week, but also suggested a significantly higher rate of serious or greater treatment-related toxicity to the eyes at dose equivalents of at least 8 mg/kg 3x/week.  Following the release of the foregoing data, CytomX’s stock price fell more than 36%.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

Class Period: May 17, 2018 - May 13, 2020
Main Menu