SAN DIEGO and WEST LAFAYETTE, Ind., June 24, 2014 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that it has filed a federal securities class action lawsuit on June 24, 2014, in the U.S. District Court for the Southern District of Indiana (the "Court"), on behalf of all persons who purchased or otherwise acquired Endocyte, Inc. ("Endocyte" or the "Company") (NASDAQ: ECYT) securities between March 21, 2014 and May 2, 2014, inclusive (the "Class Period"), against the Company and certain of its officers and directors for, among other things, violations of sections 10(b) of the U.S. Securities and Exchange Act of 1934 (the "Exchange Act") and U.S. Securities and Exchange Commission Rule 10b-5 promulgated thereunder. The complaint seeks relief on behalf of the named plaintiffs and all other similarly situated shareholders of Endocyte during the Class Period. The named plaintiffs are represented by Robbins Arroyo LLP.
Endocyte Is Accused of Making False and Misleading Statements Concerning the Company's Business and Operations
The complaint arises out of false and misleading statements regarding the efficacy of Endocyte's experimental drug, VYNFINIT®. The complaint alleges that during the Class Period, certain of Endocyte's officers issued materially false and misleading statements regarding the Company's business prospects. Specifically, on March 21, 2014, Endocyte issued a press release announcing that the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency issued "positive opinions" for the "Conditional Marketing Authorisations" for the drug VYNFINIT®, used to treat platinum-resistant ovarian cancer ("PROC") with VYNFINIT® using testing methods known as response evaluation criteria in solid tumors ("RECIST"). Endocyte failed to disclose that the "positive opinions" were based on the testing criteria called RECIST 1.0 while the pending analysis for the "Conditional Marketing Authorisations" would be using the more stringent RECIST 1.1 testing criteria. As a result of the defendants' false statements, on March 21, 2014, Endocyte's stock jumped 92%, from $14.64 to $28.17. The complaint further alleges that, in an attempt to take advantage of the Company's stock jump following the March 21 press release, Endocyte issued a public offering to quickly sell shares at the inflated price. By April 2, 2014 the Company issued over 5 million shares, and acquired a net proceed of approximately $101.8 million.
Endocyte's Stock Price Drops on News of VYNFINIT® Study Failure
On May 2, 2014 the Company announced that VYNFINIT® was found ineffective in the treatment of PROC based on RECIST 1.1. Upon this announcement, on May 2, 2014, Endocyte stock dropped over 61%, from $17.38 to close at $6.62. On May 19, 2014 the company then announced that it would withdraw its application to sell VYNFINIT® in Europe. The omitted and/or misrepresented information is believed to be material to potential Endocyte's shareholders' ability to make an informed decision whether to purchase Endocyte stock.
If you purchased or otherwise acquired Endocyte stock during the Class Period and wish to serve as lead plaintiff, you must move the Court no later than sixty days from June 24, 2014. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact attorney Darnell R. Donahue of Robbins Arroyo LLP at 800-350-6003, via the shareholder information form on our website, or by e-mail at firstname.lastname@example.org. Any member of the Class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent Class member.
Robbins Arroyo LLP, a nationally recognized leader in the area of shareholder rights litigation, represents individual and institutional investors in securities class action lawsuits and shareholder derivative actions. Robbins Arroyo LLP has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Past results do not guarantee similar outcomes. For more information about the firm, please go to http://www.robbinsarroyo.com.
Press release link: www.robbinsarroyo.com/shareholders-rights-blog/endocyte-inc
SOURCE Robbins Arroyo LLP