Robbins Geller Obtains Class Certification for Puma Biotechnology Investors
In an order dated December 8, 2017, the Honorable Andrew J. Guilford of the Central District of California certified a class of investors in Hsingching Hsu v. Puma Biotechnology, Inc. and appointed Robbins Geller as class counsel. In appointing the Firm as class counsel, the court affirmed Robbins Geller’s expertise in “identify[ing] or investigating potential claims in the action . . . counsel’s experience in handling class actions, other complex litigation, and the types of claims asserted in the action . . . counsel’s knowledge of the applicable law . . . [and] the resources that counsel will commit to representing the class.”
The case charges Puma and the Company’s CEO and CFO with violations of the Securities Exchange Act of 1934. Puma is a development-stage biopharmaceutical company, focused on the acquisition, development and commercialization of drugs to enhance cancer care. The company’s only product candidate is an investigational drug known as PB272 (“neratinib”), which Puma touted as an extended adjuvant treatment for human epidermal growth factor receptor 2 (“HER2”)-positive breast cancer. Lead plaintiff Norfolk County Council, as Administering Authority of the Norfolk Pension Fund, asserts that on July 22, 2014, Puma overstated the top-line efficacy results and understated the safety results from its Phase III ExteNET trial, which compared extended adjuvant treatment with neratinib to placebo in HER2-positive breast cancer patients who were pre-treated with Herceptin. The statements misled investors into thinking the disease-free survival rates over time showed an increasing benefit for those on neratinib versus those on a placebo, and that the severe diarrhea rate and adverse event drop-out rate were in-line with prior trials. In response to defendants’ statements regarding the result of the trial, Puma’s stock increased $174.37 per share, a one-day increase of over 295%.
In granting certification, the court commented that Robbins Geller attorneys will “‘fairly and adequately represent the interests of the class.’”
Hsingching Hsu v. Puma Biotechnology, Inc, No. 8:15-cv-00865, Order Granting Class Action Certification (C.D. Cal. Dec. 8, 2017).