Former Attorney General of Louisiana alerted all the shareholders of ChemoCentryx Inc (NASDAQ: CCXI) about the pending deadlines on a securities fraud filed in the United States district court since the company misrepresented the data to the investors.
Call to Investor
As per the plaintiff, all investors who purchased the common stock of ChemoCentryx in the class period November 26, 2019 till May 6, 2021, can be appointed as a plaintiff of a lawsuit. To become a plaintiff representative, the purchase transaction needs to be done before July 6, 2021.
Why the Class Action
A biopharmaceutical company, ChemoCentryx, focused on developing new medications to treat inflationary disorders, cancer, and autmoine diseases. In November 2019 ChemoCentryx issued a public statement stating the positive outcome from the Phase III trial signifying Avacopan’s performance. During the entire period, the defendant (ChemoCentryx) stated all the safety profiles of the medications for the treatment of AAV.
After four months, in May 2021, the company announced the FDA arranged to provide opinions of various independent experts’ part of the Advisory Committee. Many experts raised concerns about the data revealed from the Phase III trial. Post this, ChemoCentryx stock declined by almost 45%, as the company misrepresented the false data to the investors. Hence, the investor who believed the company initially offloaded their common stock led to the fall in stock prices. Given the misrepresentation of the data, the Class Action Lawsuit is filed in the United States district court. This action lawsuit is filed to recover the damage from the defendant (ChemoCentryx) for violations of laws under the regulations (the Securities Exchange Act,1934).
This lawsuit indicates that any company that provides or misleading information or tries to do fraud will not be bared, and action would be taken against them under the Act.