NEW YORK, July 19, 2013 (GLOBE NEWSWIRE) -- Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a class action lawsuit against Vanda Pharmaceuticals, Inc. ("Vanda" or the "Company") (Nasdaq:VNDA) and certain of its officers. The class action, filed in United States District Court, District of Columbia, and docketed under 13-cv-00955-RC, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of Vanda between December 18, 2012 and June 18, 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 thereunder.
If you are a shareholder who purchased Vanda securities during the Class Period, you have until August 24, 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 rswilloughby@pomlaw.com 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.
Vanda is a biopharmaceutical company focused on the development and commercialization of products for the treatment of central nervous system disorders. The Company's product portfolio includes tasimelteon, a compound for the treatment of circadian rhythm sleep disorders (CRSD), which is currently in clinical development for "Non-24," Fanapt, a compound for the treatment of schizophrenia, the oral formulation of which is currently being marketed and sold in the U.S. by Novartis Pharma AG (Novartis), and VLY-686, a small molecule neurokinin-1 receptor (NK-1R) antagonist.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the results of the clinical trial for tasimelteon. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company was forced to unilaterally change the primary endpoint in the middle of the Phase III studies as it was already in possession of data suggesting that the original primary endpoint was not going to be met; (2) the Company eliminated nighttime total sleep as the primary endpoint in its studies as there was no discernible difference in efficacy and safety in nighttime total sleep between those patients deemed to have Non-24 and those patients with a normal circadian rhythm; (3) the replacement primary endpoint installed to assess tasimelteon's efficacy and safety was created post facto by the Company and has never been used before in sleep-drug clinical trials, nor was it endorsed by the FDA; and (4) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.
On June 19, 2013, The Street published an article raising doubts about the quality and efficacy of Vanda's clinical trial procedure and test data. Among other issues, the article noted multiple changes in the primary endpoint over the course of the trials, including a change just one month before study results were published to a new primary endpoint that has allegedly never been used before in sleep-drug clinical trials, nor was it endorsed by the FDA. The article also states that Vanda was forced to cut patient enrollment in the clinical trials in half because an insufficient number of totally blind patients with Non-24 could not be identified, and that ultimately less than 5% of the patients enrolled in the trials suffered from Non-24 according to the "textbook definition" of the disease. On this news, Vanda shares declined $2.41 per share or more than 22%, to close at $8.51 per share on June 19, 2013.
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.