Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Celladon Corporation
SAN DIEGO, July 2, 2015 /PRNewswire/ -- Robbins Geller Rudman & Dowd LLP ("Robbins Geller") (http://www.rgrdlaw.com/cases/celladon/) today announced that a class action has been commenced in the United States District Court for the Southern District of California on behalf of purchasers of Celladon Corporation ("Celladon") (NASDAQ:CLDN) publicly traded securities during the period between July 7, 2014 and June 25, 2015 (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at [email protected]. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/celladon/. 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.
The complaint charges Celladon and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Celladon is a clinical-stage biotechnology company that is focused on the development of cardiovascular gene therapy and calcium dysregulation.
The complaint alleges that during the Class Period defendants' made false and misleading statements and/or failed to disclose adverse information regarding the Company's prospects for its lead drug candidate, MYDICAR, for treating enzyme deficiency in heart failure patients that results in inadequate pumping of the heart. As a result of these false and misleading statements or omissions, Celladon securities traded at artificially inflated prices during the Class Period.
On April 26, 2015, Celladon announced that the Company's Phase 2b CUPID2 trial of MYDICAR did not meet its primary and secondary goals. The Company reported that "the primary endpoint comparison of MYDICAR to placebo resulted in a hazard ratio of 0.93 (0.53, 1.65 95%CI) (p=0.81), defined as heart failure-related hospitalizations or ambulatory treatment for worsening heart failure" and the "secondary endpoint comparison of MYDICAR to placebo, defined as all-cause death, need for a mechanical circulatory support device, or heart transplant, likewise failed to show a significant treatment effect." As a result of this news, the price of Celladon stock fell $11.04 per share to close at $2.64 per share on April 27, 2015, a decline of 80% on volume of 32 million shares.
On June 1, 2015, Celladon issued a press release announcing the abrupt resignation of the Company's Chief Executive Officer. Then, on June 26, 2015, before the market opened, Celladon announced the suspension of its plans for further research or development of its MYDICAR program and other pre-clinical programs, indicating there was a possibility that the Company could be liquidated with net cash available to shareholders of $25-$30 million. As a result of this news, the price of Celladon stock dropped $0.85 per share to close at $1.35 per share on June 26, 2015, a one-day decline of 38% on volume of 9 million shares, and a 95% decline from the stock's Class Period high price.
Plaintiff seeks to recover damages on behalf of all purchasers of Celladon publicly traded securities during the Class Period (the "Class"). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller, with 200 lawyers in ten offices, represents U.S. and international institutional investors in contingency-based securities and corporate litigation. The firm has obtained many of the largest securities class action recoveries in history and was ranked first in both the amount and number of shareholder class action recoveries in ISS's SCAS Top 50 report for 2014. Please visit http://www.rgrdlaw.com/cases/celladon/ for more information.
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SOURCE Robbins Geller Rudman & Dowd LLP
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