LOS ANGELES--(EON: Enhanced Online News)--Lundin Law PC, a shareholder rights firm, announces that it is investigating claims against ProNAi Therapeutics Inc. (“ProNAi” or the “Company”) (Nasdaq: DNAI) concerning possible violations of federal securities laws.
To get more information about this investigation, please contact Brian Lundin, Esquire, of Lundin Law PC, at 888-713-1033, or via email at email@example.com.
The investigation is centered 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 ProNAi (DNAI) investors between July 15, 2015 and June 6, 2016, inclusive, known as the “Class Period,” including shareholders 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, intended to attack BCL2, an overexpressed oncogene linked to different forms of cancer. The Complaint alleges 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 unsuccessful in proving the efficiency and safety of PNT2258 by failing to satisfy primary or secondary endpoints; and because Phase 2 trials were intended as open-label studies, ProNAi management was aware that the Wolverine study was not performing well and that patients were leaving the Brighton study in alarming rates.
Before the beginning of the Class Period, ProNAi finished a Phase 1 safety trial and a Pilot Phase 2 open-label trial of PNT2258. The positive outcome of these initial trials encouraged ProNAi to initiate two separate Phase 2 clinical trials for different treatment populations. In December 2014, ProNAi began 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 started Brighton, an open-label 50 patient Phase 2 trial for the treatment of Richter’s transformed chronic lymphocytic leukemia. Both trials happened during the Class Period.
On December 15, 2015, ProNAi revealed 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 revealed the resignation of its Chief Scientific Officer, Wendi Rodrigueza, effective February 25. On March 18, ProNAi revealed the resignation of director Dr. Alvin Vitangcol, effective that day as well as Dr. Albert Chang’s decision to step down after the Company’s 2016 annual stockholders meeting. On May 2, 2016, ProNAi revealed 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 showing interim data for the Wolverine trial. Due to these results, the Company announced that PNT2258 failed to produce results sufficient to justify its continued clinical development. Furthermore, ProNAi found that 4 of the 5 patients enrolled in Brighton had already stopped treatment. Because of poor 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.
Lundin Law PC was founded by Brian Lundin, a securities litigator based in Los Angeles dedicated to upholding shareholders’ rights.
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