SAN DIEGO and MENLO PARK, Calif., July 15, 2015 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that a federal securities fraud class action complaint was filed in the U.S. District Court for the Northern District of California. The complaint alleges that officers and directors of Avalanche Biotechnologies, Inc. (NASDAQGM: AAVL) violated the Securities Exchange Act of 1933 and the Securities Exchange Act of 1934 between July 31, 2014 and June 15, 2015, by making materially false and misleading statements about Avalanche's business prospects. The class action is filed on behalf of those who purchased Avalanche securities pursuant to the company's Registration Statement and Prospectus issued in connection with its initial public offering on July 31, 2014. Avalanche, a clinical-stage biotechnology company, focuses on discovering and developing novel gene therapies for the treatment of ophthalmic diseases. Avalanche recently completed Phase 2a of its clinical study for its lead product, AVA-101, which is designed to reduce vascular permeability in patients with Wet Age-Related Macular Degeneration.
View this information on the law firm's Shareholder Rights Blog:
Avalanche Biotechnologies Misrepresents Its Clinical Study
According to the complaint, Avalanche officials deceived the investing public and caused the price of its securities to be sold at artificially inflated prices. Avalanche's Registration Statement, effective July 30, 2014, stated that the primary endpoint for Phase 2a of its AVA-101 trial is safety, and that secondary endpoints include retinal thickness, visual acuity, and the need for rescue injections. The Registration Statement also stated that the trial is fully enrolled and the company expected to report top-line data in mid-2015.
However, on June 15, 2015, the company issued a press release detailing the results of the Phase 2a study, which stated that the study was not designed to show statistically significant differences between the active and control subjects in the secondary endpoints. The complaint alleges that Avalanche officials failed to previously indicate that the study was not designed to show any statistical significance. These misrepresentations were allegedly made to conceal the design for the insignificant results of the Phase 2a study, thereby artificially inflating the price of its securities. On this news, the company's stock fell $21.83 per share, or over 56%, to close at $17.05 per share on June 16, 2015.
Avalanche Biotechnologies Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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SOURCE Robbins Arroyo LLP