Ventrus Biosciences, Inc. Sued by Investor
SAN DIEGO and NEW YORK, May 17, 2013
SAN DIEGO andNEW YORK, May 17, 2013 /PRNewswire/ --Shareholder rights
attorneys at Robbins Arroyo LLP announce that a shareholder of Ventrus
Biosciences, Inc. (NASDAQ: VTUS) filed a federal securities fraud class action
complaint on May 9, 2013, in the U.S. District Court for the Southern District
of New York. The complaint alleges that Ventrus and certain of its officers
and directors violated the Securities Exchange Act of 1934 between December
17, 2010 and June 25, 2012 (the "Class Period"). Ventrus is a pharmaceutical
company that specializes in the development and commercialization of
late-stage prescription drugs for gastrointestinal disorders.
Ventrus Accused of Making False and Misleading Statements Concerning the
Company's Lead Product, Iferanserin VEN 309
According to the complaint, Ventrus and certain of its officers and directors,
made materially false and misleading statements during the Class Period and
failed to disclose material adverse facts about the company's lead product,
iferanserin VEN 309, a topical treatment for symptomatic internal hemorrhoids.
Specifically, the complaint alleges that Ventrus falsely represented that: (i)
iferanserin VEN 309 was a one-of-a-kind product that had no competing FDA
approved comparisons; (ii) iferanserin VEN 309 would be the only product
approved for use as a prescription treatment for hemorrhoids; (iii) the prior
phase II and IIB studies of iferanserin VEN 309 demonstrated a consistent
reduction of hemorrhoidal symptoms; (iv) the company had the ability to market
iferanserin VEN 309 to 12.5 million potential patients; and (v) the Phase III
of the trial of iferanserin VEN 309 was low risk in comparison to other
therapeutic drug development programs.
The complaint also alleges that Ventrus touted its communications with the
Federal Drug Administration as frequent and ongoing as evidence that FDA
approval for iferanserinVEN 309 would be achieved. Moreover, the company's
misrepresentations of iferanserin VEN 309 allowed Ventrus to raise over $70
million through its December 17, 2010 initial public offering and a subsequent
offering approximately one month prior to disclosing the truth to its
The Truth Is Revealed and Ventrus' Stock Price Drops
One June 25, 2012, Ventrus issued a press release announcing that iferanserin
VEN 309 failed its Phase III trial. Additionally, Ventrus disclosed that it
would abandon further development of iferanserin VEN 309 and would no longer
attempt to obtain FDA approval. In response to this news, Ventrus' stock
plunged over 50%, to close at $5.02 per share on June 25, 2012.
If you purchased or otherwise acquired Ventrus stock during the Class Period
and wish to serve as lead plaintiff, you must act no later than July 8, 2013.
To discuss your shareholder rights, please contact attorney Darnell R. Donahue
at (800) 350-6003, firstname.lastname@example.org, or via the shareholder
information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation
and 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. For more information, please
go to http://www.robbinsarroyo.com.
Press release link:
Attorney Advertising.Past results do not guarantee a similar outcome.
Darnell R. Donahue
Robbins Arroyo LLP
(619) 525-3990 or Toll Free at (800) 350-6003
SOURCE Robbins Arroyo LLP
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