NEW YORK, Jan. 19, 2018 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Aradigm Corporation ("Aradigm" or the "Company") (NASDAQ: ARDM) of the March 12, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Aradigm stock or options between July 27, 2017, and January 8, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/ARDM. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to [email protected].
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Attn: Richard Gonnello, Esq.
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The lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of all those who purchased Aradigm securities between July 27, 2017, and January 8, 2018 (the "Class Period"). The case, Kheder v. Aradigm Corporation et al, No. 18-cv-00261 was filed on January 11, 2018.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by misrepresenting the ability of its Linhaliq treatment for a treatment for non-cystic fibrosis bronchiectasis ("NCFBE") to obtain marketing approval by the U.S. Food and Drug Administration ("FDA").
Specifically, on July 27, 2017, Aradigm submitted a New Drug Application ("NDA") to the FDA supported by the results of two Phase III clinical trials, ORBIT-3 and ORBIT-4. However, on January 9, 2017, the Antimicrobial Drugs Advisory Committee ("ADAC") of the FDA published briefing documents in its website stating, in part, that "[r]easons for the discordance in efficacy findings between trials cannot be explained based on the information collected in the two trials." The ADAC also expressed concern as to whether longer exposure to Linhaliq's active agent, ciprofloxacin, "as would be expected in clinical practice (likely lifelong after starting therapy), would result in additional safety issues and bacterial resistance leading to erosion of efficacy over time."
After the announcement, Aradigm's share price fell from $5.98 per share on January 8, 2018 to a closing price of $3.70 on January 9, 2018 —a $2.28 or a 38.13% drop.
Subsequently, on January 11, 2017, the Company announced that ADAC did not recommend approval for Linhaliq as a treatment for non-cystic fibrosis bronchiectasis (NCFBE").
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative 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. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Aradigm's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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