Karyopharm Therapeutics Inc.
- Company Name
- Karyopharm Therapeutics Inc.
- Stock Symbol
- Class Period
- Purchasers of Karyopharm’s common stock between March 2, 2017 and February 22, 2019, including purchasers in or traceable to the Company’s April 28, 2017 and/or May 7, 2018 secondary offerings
- Motion Deadline
- September 21, 2019
- District of Massachusetts
The complaint charges Karyopharm, certain of its officers and/or directors, and the underwriters of its March 2017 and May 2018 secondary offerings of Karyopharm common stock (the “Offerings”) with violations of the Securities Exchange Act of 1934 and/or the Securities Act of 1933. Karyopharm is a clinical-stage pharmaceutical company focused on the development of drugs for the treatment of cancer.
On or about April 28, 2017, Karyopharm conducted a secondary offering of more than 4.48 million shares of common stock at $10.25 per share. On or around May 7, 2018, Karyopharm conducted another secondary offering of more than 10.5 million shares of common stock at $14.75 per share.
The complaint alleges that during the Class Period and in the Registration Statements and Prospectuses for the Offerings, defendants falsely represented the safety and efficacy of selinexor, a drug that Karyopharm was in the process of developing for use in the treatment of various types of cancer. Specifically, defendants’ material misrepresentations and omissions centered on defendants’ claims regarding results from clinical trials of selinexor for use in treating patients with certain types of blood cancer. During the Class Period, defendants claimed that the clinical trials for selinexor demonstrated that it was “well-tolerated” by patients and that there were “no new clinically significant adverse events in the patients receiving selinexor.” The Company repeatedly touted the commercial prospects for selinexor and consistently described selinexor as having a “predictable and manageable tolerability profile” and a “very nice safety profile.” In reality, selinexor was unsafe and had limited efficacy. As a result of defendants’ misrepresentations and omissions, the price of Karyopharm common stock was artificially inflated to more than $21 per share during the Class Period.
Then on February 22, 2019, the FDA released a briefing document that expressed serious concerns with selinexor. Specifically, the FDA revealed that, contrary to Karyopharm’s assurances, one of the previously cancelled selinexor trials had resulted in “worse overall survival” for certain patients treated with selinexor, which “highlight[ed] the toxicity of th[e] drug.” The FDA unambiguously concluded that “[t]reatment with selinexor is associated with significant toxicity” and has “limited efficacy.” These disclosures caused the Company’s stock price to decline from $8.97 per share to $5.07 per share, or more than 43%.