NEW YORK, May 12, 2021 /PRNewswire/ -- Bernstein Liebhard, a nationally acclaimed investor rights law firm, reminds investors of the deadline to file a lead plaintiff motion in a securities class action lawsuit that has been filed on behalf of investors who purchased or acquired the securities of BELLUS Health Inc. ("BELLUS " or the "Company") (NASDAQ: BLU) from September 5, 2019, through July 5, 2020 (the "Class Period"). The lawsuit filed in the United States District Court for the Southern District of New York alleges violations of the Securities Exchange Act of 1934.
The complaint alleges that throughout the Class Period, defendants made materially false and/or misleading statements, as well as failed to disclose to investors that BLU-5937 had a much higher risk of failing to demonstrate efficacy for chronic cough. Accordingly, despite Merck's successful Phase 2 study, BLU-5937 had a high risk of failing its Phase 2 study.
Before markets opened on July 6, 2020, Defendants revealed the truth about BLU-5937's efficacy. They announced that the drug had failed a Phase 2 study of chronic cough patients for whom other treatments had not worked. Specifically, BLU-5937 was not significantly better than a placebo at reducing the frequency at which patients coughed. The Phase 2 trial showed a "clinically meaningful and highly statistically significant effect only on a subset of patients who had high cough counts (around 32 per day), so the Company was planning a Phase 2b trial focused on those patients.
On this news, indicating that BELLUS had fallen even further behind Merck in developing an FDA-approved treatment for refractory chronic cough, the Company's stock price plummeted over 75% to close at $2.97 on July 8, 2020 on heavy trading volume.
If you wish to serve as lead plaintiff, you must move the Court no later than May 17, 2021. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn't require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal's "Plaintiffs' Hot List" thirteen times and listed in The Legal 500 for ten consecutive years.