Pomerantz Law Firm has filed a Class Action Against Aveo Pharmaceuticals, Inc.
and Certain Officers -- AVEO
NEW YORK, May 9, 2013 (GLOBE NEWSWIRE) -- Pomerantz Grossman Hufford Dahlstrom
& Gross LLP has filed a class action lawsuit against Aveo Pharmaceuticals,
Inc. ("Aveo" or the "Company") (Nasdaq:AVEO) and certain of its officers. The
class action, filed in United States District Court, District of
Massachusetts, and docketed under 1:13-cv-11157, is on behalf of a class
consisting of all persons or entities who purchased or otherwise acquired
securities of Aveo between January 3, 2012 and May 1, 2013, both dates
inclusive (the "Class Period"). This class action seeks to recover damages
against the Company and certain of its officers and directors as a result of
alleged violations of the federal securities laws pursuant to Sections 10(b)
and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated
If you are a shareholder who purchased Aveo securities during the Class
Period, you have until July 8, 2013 to ask the Court to appoint you as Lead
Plaintiff for the class. A copy of the Complaint can be obtained at
www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at
firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll free, x237.
Those who inquire by e-mail are encouraged to include their mailing address,
telephone number, and number of shares purchased.
Aveo is a biopharmaceutical company focused on discovering, developing, and
commercializing cancer therapeutics. The Company's lead product is an oral
inhibitor of the vascular endothelial growth factor ("VEGF") receptors.
The Complaint alleges that throughout the Class Period, Defendants conditioned
investors to believe that the Company's drug Tivopath or tivozanib, would
receive approval from the U.S. Food and Drug Administration ("FDA") through a
host of materially false and misleading statements regarding its Phase III
("TIVO-1") trial design and results. Specifically: (a) the Company failed to
disclose to investors that the FDA had recommended to the Company to conduct
an additional Phase III trial due to adverse trends in the Company's first
study; (b) the Company misled investors regarding the overall safety and
efficacy of the product, including failure to disclose the 25% higher rate of
death associated with tivozanib therapy compared to the control drug,
sorafenib; (c) the Company failed to disclose that almost 90% of the patients
studied in TIVO-1 were enrolled from sites in Central and Eastern Europe with
inconsistent treatment patterns from those in the US. As a result of the
foregoing, the Company's statements were materially false and misleading at
all relevant times.
On April 30, 2013, the FDA released its Oncologic Drugs Advisory Committee
("ODAC") briefing document (the, "Briefing Document") that, among other
matters, took particular issue with the rigor of the tivozanib trial.
The Briefing Document also highlighted the regulatory history of Tivopath, and
the fact that the Company disregarded explicit FDA recommendations for the
Company to conduct an additional Phase III trial, "[a] pre-NDA meeting was
held in May 2012.Here, the FDA expressed concern about the adverse trend in
overall survival in the single Phase 3 trial ("TIVO-1") and recommended that
the sponsor [Aveo] conduct a second adequately powered randomized trial in a
population comparable to that in the US."On this news the Company's shares
fell $2.33 or 31.31% per share to close at $5.11 on April 30, 2013, on volume
of over 15 million shares.
On May 2, 2013, the ODAC voted by an overwhelming majority (13 to 1) to not
recommend approval of the tivozanib, because, "the application for
investigational agent tivozanib did not demonstrate a favorable
benefit-to-risk evaluation for the treatment of advanced renal cell carcinoma
(RCC) in an adequate and well-controlled trial."On this news, Aveo shares
declined $2.61 per share or nearly 50%, to close at $2.65 per share on May 2,
2013, on volume of over 15 million shares.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego,
is acknowledged as one of the premier firms in the areas of corporate,
securities, and antitrust class litigation. Founded by the late Abraham L.
Pomerantz, known as the dean of the class action bar, the Pomerantz Firm
pioneered the field of securities class actions. Today, more than 70 years
later, the Pomerantz Firm continues in the tradition he established, fighting
for the rights of the victims of securities fraud, breaches of fiduciary duty,
and corporate misconduct. The Firm has recovered numerous multimillion-dollar
damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT: Robert S. Willoughby
Pomerantz Grossman Hufford Dahlstrom & Gross LLP
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