SAN FRANCISCO, CA / ACCESSWIRE / May 6, 2021 / Hagens Berman updates investors in the following publicly-traded companies and urges investors who have suffered significant losses to contact the firm. Further details about the cases, including important upcoming deadlines, can be found at the links provided.
ACAD Investors Click Here.
FGEN Investors Click Here.
RMO Investors Click Here.
Acadia Pharmaceuticals Inc. (NASDAQ:ACAD) Securities Fraud Action:
The complaint alleges that Defendants misrepresented facts concerning Acadia's supplemental new drug application ("sNDA") for NUPLAZID® (pimavanserin), which treats dementia-related psychosis ("DRP").
Specifically, on July 20, 2020, Acadia announced the FDA accepted for filing the sNDA and stated that its pivotal study for the drug showed a meaningful reduction of psychosis symptoms and a nearly 3X reduction in the risk of relapse for patients continuing on pimavanserin vs. placebo. Thereafter, the company repeatedly stated the FDA had not identified any potential review issues and reiterated the drug's efficacy.
But the truth began to emerge on Mar. 8, 2021, when Acadia announced that on Mar. 3, 2021 the FDA informed the company that it had identified deficiencies in the sNDA.
Then, on Apr. 5, 2021, Acadia announced the FDA had rejected the sNDA, citing a lack of statistical significance regarding some of the subgroups of dementia and inadequate numbers of patients with some less common dementia subtypes.
"We're focused on investors' losses and proving Acadia misled investors by concealing FDA-related review risks for the sNDA," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are an Acadia investor and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
FibroGen, Inc. (NASDAQ:FGEN) Securities Fraud Action:
The complaint centers on FibroGen's presentation of false data of roxadustat to make the anemia drug look safer than it is.
Throughout the Class Period, FibroGen touted the prospects of roxadustat. A key selling point for the drug was its purported heart safety as compared to standard of care erythropoietin (EPO) injectable therapies, which cannot be proscribed to a variety of patients at risk of major cardiac events. To support this marketing edge, FibroGen presented data from phase 3 trials purportedly showing roxadustat was safer than EPO, among other at risk populations, in incident dialysis patients.
But after the market closed on Apr. 6, 2021, FibroGen stunningly admitted to altering stratification factors to make roxadustat's hazard ratios indicate lower risk relative to EPO. As a result of the data manipulation, FibroGen CEO Enrique Conterno admitted that the company can no longer say its drug was safer than EPO in incident dialysis patients.
In response to this news, several analysts slashed their FibroGen share price targets and reduced their investment recommendations. On this news, the Company's share price fell over 43%, to close at $19.74 per share on Apr. 7, 2021. Shares continued to fall 5% on Apr. 8, 2021, on heavy volume.
"We're focused on investors' losses and proving FibroGen senior management intentionally manipulated the safety-related data for its anemia drug," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a FibroGen investor and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Romeo Power, Inc. (NYSE:RMO) Securities Fraud Action:
The complaint centers on Romeo's misrepresentations and omissions concerning its access to battery cells, a key component of the company's battery modules and packs.
During the class period, Romeo emphasized the company's 4 key battery cell supply partners, which in turn eliminated supply chain risks and support its lofty revenue projections ($11 million for 2020 and $140 million for 2021). The company repeatedly assured investors it had sufficient long-term contracts to supply enough battery cells even in the face of the tight supply.
But the truth emerged on Mar. 30, 2021, when Romeo released a dismal outlook for 2021, reducing its 2021 guided revenues by a whopping 71% - 81%, claiming the shortfall stemmed from a shortage of battery cells. On an earnings call later that same day, management elaborated on the supply constraint, admitting that Romeo depended on just 2 (not 4, as previously touted) battery cell suppliers.
Analysts were shocked by news, with Morgan Stanley slashing its Romeo share target price from $12 to $7, citing the battery cell supply chain risk not previously contemplated and the dramatically lower 2021 revenue estimate as the drivers.
In response to this news, Romeo shares declined $2.04 per share, or almost 20%, in a single trading day.
"We're focused on investors' losses and proving Romeo misled investors by misstating its true supply chain risks," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Romeo Power investor and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Acadia, FibroGen, and/or Romeo Power should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email ACAD@hbsslaw.com, FGEN@hbsslaw.com, and/or RMO@hbsslaw.com.
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Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Contact: Reed Kathrein, 844-916-0895
SOURCE: Hagens Berman Sobol Shapiro LLP
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