Bernstein Liebhard LLP Announces That A Securities Class Action Has Been Filed
Against Aveo Pharmaceutical, Inc.
NEW YORK, May 10, 2013
NEW YORK, May 10, 2013 /PRNewswire/ -- Bernstein Liebhard LLP today announced
that a securities class action has been commenced in the United States
District Court for the District of Massachusetts on behalf of a class (the
"Class") of purchasers of Aveo Pharmaceutical, Inc. ("Aveo" or the "Company")
(NASDAQ: AVEO) securities between January 3, 2012 and May 1, 2013 (the "Class
Aveo is a biopharmaceutical company focused on discovering, developing, and
commercializing cancer therapies. 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, the Company (a) failed to
disclose to investors that the FDA had recommended that the Company conduct an
additional Phase III trial due to adverse trends in the Company's first study;
(b) misled investors regarding the overall safety and efficacy of the product,
including failing to disclose the 25% higher rate of death associated with
Tivozanib therapy compared to the control drug, Sorafenib; and (c) 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 U.S. 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 things,
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 that the Company
conduct an additional Phase III trial. 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) not to
recommend approval of Tivozanib, because "the application...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 another $2.61 per share or nearly
50%, to close at $2.65 per share on May 2, 2013, on volume of over 15 million
Plaintiffs seek to recover damages on behalf of all Class members who invested
in Aveo securities during the Class Period. If you invested in Aveo
securities as described above during the Class Period, and either lost money
on the transaction or still hold the stock, you may wish to join in this
action to serve as lead plaintiff. In order to do so, you must meet certain
requirements set forth in the applicable law and file appropriate papers no
later than July 8, 2013.
A "lead plaintiff" is a representative party that acts on behalf of other
class members in directing the litigation. In order to be appointed lead
plaintiff, the court must determine that the class member's claim is typical
of the claims of other class members, and that the class member will
adequately represent the class. Under certain circumstances, one or more
class members may together serve as lead plaintiff. Your ability to share in
any recovery is not, however, affected by the decision whether or not to serve
as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel
of your choice, to serve as your counsel in this action.
If you are interested in discussing your rights as an Aveo shareholder and/or
have information relating to the matter, please contact Joseph R. Seidman, Jr.
at (877) 779-1414 or email@example.com.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and
shareholder rights cases and recovered over $3 billion for its clients. It
has been named to The National Law Journal's "Plaintiffs' Hot List" in each of
the last ten years.
You can obtain a copy of the complaint from the clerk of the court for the
United States District Court for the District of Massachusetts.
Bernstein Liebhard LLP
10 East 40th Street
New York, New York 10016
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York, New York 10016, (212) 779-1414. The lawyer responsible for this
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do not guarantee or predict a similar outcome with respect to any future
Joseph R. Seidman, Jr.
Bernstein Liebhard LLP
SOURCE Bernstein Liebhard LLP
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