LOS ANGELES--(EON: Enhanced Online News)--Goldberg Law PC, a national shareholder rights litigation firm, announces that it is investigating ProNAi Therapeutics Inc. (“ProNAi” or the “Company”) (Nasdaq: DNAI) concerning possible violations of federal securities laws.
If you purchased or otherwise acquired ProNAi shares and would like more information regarding the investigation, we encourage you to contact Michael Goldberg or Brian Schall, of Goldberg Law PC, 1999 Avenue of the Stars Suite 1100, Los Angeles, CA 90067, at 800-977-7401, to discuss your rights without cost to you. You can also reach us through the firm’s website at http://www.Goldberglawpc.com, or by email at email@example.com.
The investigation focuses on whether ProNAi and some of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, or committed violations of Sections 11 and 15 of the Securities Act of 1933.
Class action lawsuits were filed on behalf of purchasers of the common stock of ProNAi Therapeutics Inc. (DNAI) between July 15, 2015 and June 6, 2016, inclusive, also known as the “Class Period,” including investors who bought shares pursuant or traceable to the Company’s July 15, 2015 initial public offer of 8.1 million shares at $17.00 per share (“IPO”).
ProNAi’s lead product candidate is PNT2258, which is intended to attack BCL2, a widely overexpressed oncogene related to different forms of cancer. According to the Complaint, ProNAi and certain of its officers and directors (“Defendants”) misrepresented and/or failed to disclose that: the Wolverine and Brighton Phase 2 trials of PNT2258, would be unable to prove the efficiency and safety of PNT2258 by failing to satisfy primary or secondary endpoints; and because Phase 2 trials were designed as open-label studies, ProNAi management was aware that the Wolverine study was not performing well and that patients were pulling out of the Brighton study in alarming rates.
Before the beginning of the Class Period, ProNAi completed a Phase 1 safety trial and a Pilot Phase 2 open-label trial of PNT2258. The positive results of these initial trials encouraged ProNAi to start two separate Phase 2 clinical trials for different treatment populations. In December 2014, ProNAi started the Wolverine trial, an open-label 60 patient trial for the treatment of third-line relapsed or refractory diffuse large B-cell lymphoma. In October 2015, the Company initiated Brighton, an open-label 50 patient Phase 2 trial for the treatment of Richter’s transformed chronic lymphocytic leukemia. Both trials occurred during the Class Period.
On December 15, 2015, ProNAi announced that director Dr. Peter Thompson would resign from the Board of Directors and the Audit Committee effective that day. The following month, on January 26, 2016, ProNAi announced the resignation of its Chief Scientific Officer, Wendi Rodrigueza, effective February 25. On March 18, ProNAi released the resignation of director Dr. Alvin Vitangcol, effective that day, Dr. Albert Chang’s decision to step down after the Company’s 2016 annual stockholders meeting. On May 2, 2016, ProNAi announced that Chief Medical Officer, Dr. Richard Messmann, told the Company of his decision to resign on April 26, 2016.
On June 6, 2016, ProNAi issued a press release announcing interim data for the Wolverine trial. Due to these results, the Company announced that PNT2258 failed to produce sufficient results to justify its continued clinical development. Furthermore, ProNAi stated that 4 of the 5 patients enrolled in Brighton had already stopped treatment. Because of underwhelming results in both trials, the Company stated it was suspending all clinical development of PNT2258. The price of ProNAi stock fell from $6.38 on June 3, 2016 to $2.07 on June 6, 2016, causing investors severe harm.
If you have any questions concerning your legal rights, please immediately contact Goldberg Law PC at 800-977-7401, or visit our website at http://www.Goldberglawpc.com, or email us at firstname.lastname@example.org.
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