ROBBINS GELLER RUDMAN & DOWD LLP FILES CLASS ACTION SUIT AGAINST TREVENA, INC.
New York – November 6, 2018 – Robbins Geller Rudman & Dowd LLP (http://www.rgrdlaw.com/cases/trevena-inc/) today announced that a class action has been commenced on behalf of purchasers of Trevena, Inc. (NASDAQ:TRVN) common stock during the period between May 2, 2016 and October 9, 2018 (the “Class Period”). This action was filed in the Eastern District of Pennsylvania and is captioned Louis v. Trevena, Inc., et al., No. 18-cv- 4779.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Trevena common stock during the Class Period to seek appointment as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from October 11, 2018. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. You can view a copy of the complaint as filed at http://www.rgrdlaw.com/cases/trevena-inc/.
The complaint charges Trevena and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Trevena is a clinical stage biopharmaceutical company. The Company’s most advanced drug under development during the Class Period was Olinvo, an intravenous pain reliever that was undergoing a Phase III clinical trial for the treatment of moderate-to-severe postoperative-pain after surgery. According to Trevena, its Phase II clinical trial for Olinvo had demonstrated that the drug was superior to the standard of care for post-surgery pain reduction, morphine.
The complaint alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding the prospects for Olinvo. Specifically, defendants failed to disclose that the U.S. Food and Drug Administration (“FDA”) had expressly warned Trevena, prior to the start of the Class Period, that there were many defects in the design of its Phase III clinical trial – design defects Trevena refused to remedy – that threatened to render the data derived in the Phase III clinical trial worthless. As a result, the Company’s prospects for obtaining FDA approval for commercial distribution of Olinvo, and its eventual commercial success, were much lower than defendants had led the market to believe throughout the Class Period. Based on defendants’ material misleading statements and omissions concerning the strength of its clinical development program, the design of its Phase III Olinvo clinical trial and its prospects for obtaining FDA approval to commercially distribute Olinvo, the price of Trevena common stock was artificially inflated during the Class Period to more than $8 per share.
On February 21, 2017, when the Company disclosed the results of the Phase III clinical trial of Olinvo, the data failed to show that Olinvo caused any meaningfully less adverse effects than morphine. On this news, the price of Trevena common stock declined 40%, or $3 per share. On October 9, 2018, the FDA made public its prior criticisms of the design of the Phase III clinical trial and disclosed that its Advisory Committee was recommending that the FDA reject the Company’s New Drug Application for Olinvo. On this news, the price of Trevena common stock fell another 64%, or almost $2 per share, on October 9, 2018.
Then on October 11, 2018, trading in Trevena common stock was halted on pending news. Later that day, the Company disclosed that the FDA Advisory Committee had voted against approving Olinvo. While Trevena contended that “[t]he FDA [was] not bound by the Advisory Committee’s recommendations” that day, it also acknowledged that the FDA “takes its advice into consideration when making its decision.” When trading recommenced on October 12, 2018, the stock price dropped another 7%, closing below $1 per share.
Plaintiff seeks to recover damages on behalf of all purchasers of Trevena common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 10 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For five 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 both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and 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. Please visit http://www.rgrdlaw.com for more information.
Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman, 800-449-4900
David A. Rosenfeld