SAN DIEGO--(BUSINESS WIRE)--Shareholder rights law firm Johnson & Weaver, LLP has commenced an investigation into whether Affymax, Inc. (Nasdaq: AFFY) violated state or federal laws when communicating serious side effects and the subsequent voluntary recall of its anemia drug, Omontys, in February 2013.
“It is quite suspicious that institutions and company insiders were selling Affymax stock aggressively before the voluntary recall was announced.”
According to Johnson & Weaver, LLP, shares of Affymax declined more than 85% in early trading on Monday, February 25, 2013, after the weekend announcement that its Omontys anemia drug was being voluntarily recalled. The recall was initiated because of serious side effects suffered by a small number of patients, including several deaths and hospitalizations, after taking Omontys. The F.D.A. announced on Sunday that it had received reports of 19 cases of anaphylaxis (a severe allergic reaction) and 3 patient deaths. Other patients required prompt medical attention or hospitalization.
Johnson & Weaver’s investigation is ongoing and addresses the timeline of reporting issues, specifically whether institutions were notified ahead of the general public. Jim Baker, Lead Analyst for Johnson & Weaver, stated that, "It is quite suspicious that institutions and company insiders were selling Affymax stock aggressively before the voluntary recall was announced.” Baker continued, “It is possible that institutional investors who were selling stock over the last several months were made aware of Omontys’ problems before the general public.”
If you have information that could assist in this investigation or if you are an Affymax shareholder and are interested in learning more about the investigation or your legal rights and remedies, please contact Jim Baker (firstname.lastname@example.org) or Frank Johnson (email@example.com) by email or by phone at 619-230-0063.
Johnson & Weaver, LLP is a nationally recognized shareholders’ rights law firm. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com.