Prothena Corporation plc
- Company Name
- Prothena Corporation plc
- Stock Symbol
- Class Period
- October 15, 2015 to April 20, 2018
- Motion Deadline
- July 16, 2018
- Northern District of California
The complaint charges Prothena and certain of its officers with violations of the Securities Exchange Act of 1934 (“Exchange Act”). Prothena is a development-stage biotechnology company.
The complaint alleges that during the Class Period, Prothena violated the Exchange Act by misleading investors regarding its development of NEOD001, an antibody designed to treat AL amyloidosis, a debilitating disease that can lead to organ failure and death. Throughout the Class Period, defendants misleadingly cited the results of Prothena's ongoing Phase 1/2 clinical study of NEOD001 as evidence that the drug was effective and provided a strong basis for late-stage Phase 2b and Phase 3 studies of NEOD001.
On April 23, 2018, Prothena announced it was ending all development of NEOD001 after data from its Phase 2b study showed that NEOD001 failed to reach either primary or secondary endpoints. In truth, NEOD001 was not an effective treatment for AL amyloidosis and did not provide an adequate basis for the late-stage Phase 2b and Phase 3 studies.
When the truth regarding NEOD001's prospects was finally revealed, the price of the Company's stock declined by over 69%.