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Faruqi & Faruqi, LLP Files Class Action Lawsuit Against ARIAD Pharmaceuticals, Inc. (ARIA)
Notice is hereby given that Faruqi & Faruqi, LLP has filed a class action lawsuit in the United States District Court for the District of Massachusetts, Case No. 1:13-cv-13109, on behalf of investors who purchased or otherwise acquired ARIAD Pharmaceuticals, Inc. (“ARIAD” or the “Company”) (NASDAQ: ARIA) securities and/or transacted in ARIAD options contracts between December 12, 2011 and October 17, 2013, inclusive (the “Class Period”) and suffered damages as a result.
ARIAD and its executives are charged with violations of Section 10(b) and/or 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that Defendants knew or recklessly failed to inform investors that: (1) the clinical data from the pivotal Phase 2 PACE trial of the Company’s leukemia drug Iclusig demonstrated significant cardiovascular side effects in patients treated with the drug, such as arterial thrombotic events and strokes, before and during the Class Period; and (2) as a result, Defendants’ statements regarding the safety, outlook, and commercial prospects for Iclusig were materially false and misleading at all relevant times.
On October 9, 2013, the Company updated the data from its PACE trial, disclosing that Iclusig had shown to cause a higher rate of blood clots and heart-related side effects than previously reported. As a result of this startling data, the FDA placed a hold on new patient enrollment for the Phase 3 trial of Iclusig. On this news, the price of ARIAD’s stock plummeted by $11.31 per share or more than 66%, to close at $5.83 on October 9, 2013.
Then, on October 18, 2013, ARIAD announced that it mutually agreed with the FDA to completely terminate the Company’s Phase 3 trial of Iclusig based on evaluation of the recently released safety data. On this news, the price of ARIAD’s declined by an additional $1.83 per share or more than 40%, to close at $2.67 on October 18, 2013.
Plaintiff now seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired ARIAD securities and/or transacted in ARIAD options between December 12, 2011 and October 17, 2013, excluding defendants and their affiliates, and who suffered damages thereby. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions and actions involving corporate fraud.
If you transacted in ARIAD securities as set forth above, you may, not later than December 9, 2013, move the court to serve as lead plaintiff of the class, if you so choose. In order to discuss this action, or if you have any questions concerning this notice or your rights or interests, please contact:
Faruqi & Faruqi, LLP
Please tell us about yourself by completing the form and we will provide you with additional
information on how to join the Class Action at no cost to you. If you want to be a Lead Plaintiff or join
this action now, please click HERE.