MEI Pharma, Inc. Class Action Lawsuit
- Company Name
- MEI Pharma, Inc.
- Stock Symbol
- Class Period
- August 2, 2017 to July 1, 2020
- Southern District of California
The MEI Pharma, Inc. class action lawsuit charges MEI Pharma and certain of its officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of MEI Pharma securities between August 2, 2017 and July 1, 2020, inclusive (the “Class Period”). The MEI Pharma class action lawsuit was commenced on August 10, 2020 in the Southern District of California and is captioned Bahat v. MEI Pharma, Inc., No. 20-cv-01543.
MEI Pharma is a late-stage pharmaceutical company that focuses on the development of various therapies for the treatment of cancer. MEI Pharma’s clinical drug candidates include, among others, Pracinostat, an oral histone deacetylase inhibitor. MEI Pharma and Helsinn Healthcare SA, a Swiss pharmaceutical corporation with which MEI Pharma had an exclusive worldwide license, development, manufacturing and commercialization agreement for Pracinostat to treat acute myeloid leukemia (“AML”), myelodysplastic syndrome, and for other potential indications (the “Helsinn License Agreement”), were evaluating Pracinostat in, among other studies, a pivotal Phase 3 global registration clinical trial for the treatment of adults with newly diagnosed AML who are unfit to receive intensive chemotherapy (the “Phase 3 Pracinostat Trial”).
The MEI Pharma class action lawsuit alleges that defendants made materially false and/or misleading statements, as well as failed to disclose that: (i) MEI Pharma had overstated Pracinostat’s potential efficacy as an AML treatment for the target population; (ii) consequently, the Phase 3 Pracinostat Trial was unlikely to meet its primary endpoint of overall survival; (iii) all of the foregoing, once revealed, was foreseeably likely to have a material negative impact on MEI Pharma’s financial condition and prospects for Pracinostat; and (iv) as a result, MEI Pharma’s public statements were materially false and misleading at all relevant times.
On July 2, 2020, during pre-market hours, MEI Pharma issued a press release announcing that it was discontinuing the Phase 3 Pracinostat Trial. Specifically, MEI Pharma disclosed that an interim futility analysis of the Phase 3 Pracinostat Trial, undertaken by the study’s Independent Data Monitoring Committee, “has demonstrated it was unlikely to meet the primary endpoint of overall survival compared to the control group,” and that, “[b]ased on the outcome of the interim analysis, the decision was made to discontinue the recruitment of patients and end the study” “based on a lack of efficacy and not on safety concerns.” On this news, MEI Pharma’s stock price fell more than 18%.
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