NEW YORK, Oct. 27, 2014 (GLOBE NEWSWIRE) -- Pomerantz LLP has filed a class action lawsuit against Arrowhead Research Corporation ("Arrowhead" or the "Company") (Nasdaq:ARWR) and certain of its officers. The class action, filed in United States District Court, Central District of California, and docketed under 14-cv-07911, is on behalf of a class consisting of all persons or entities who purchased Arrowhead securities between August 12, 2014 and October 8, 2014, inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased Arrowhead securities during the Class Period, you have until December 9, 2014 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.
Arrowhead is a biopharmaceutical company whose main business is developing RNA Interference ("RNAi") therapeutics. RNAi is a process by which the RNA molecules prevent gene expression and thereby destroys specific micro-RNA ("mRNA") molecules. Arrowhead's focus is to develop drugs that target the RNAi mechanism that will suppress disease-causing genes.
The Complaint alleges that throughout the Class Period, Defendants materially misstated clinical trial information from its experimental hepatitis B therapy ARC-520 by falsely suggesting that the Company's therapy was more effective than it actually was. On October 8, 2014, Arrowhead released disappointing data from its experimental hepatitis B therapy ARC-520. On that same day, an article published on TheStreet.com reported that Arrowhead CEO Chris Anzalone and his team knew for months that ARC-520 dosed at 1 mg/kg and 2 mg/kg yielded 0.2-log and 0.3-log reductions in hepatitis B viral load. Yet, Arrowhead executives led investors to believe that ARC-520 was more potent and achieved viral load reductions in the range of 0.7 log or higher.
On August 12, 2014, Defendants held a conference call to report on Q3 2014 earnings and the progress of the Phase IIa study. During this call, Defendants made materially false and misleading statements and/or failed to disclose the true viral reduction level that ARC-520 can induce in humans, suggesting that its viral reduction was similar to the chimpanzee result (0.8 log reduction) and closer to 1 log (90% reduction).
On October 8, 2014, the Company announced the results of its Phase IIa study, revealing that ARC-520 dosed at 2 mg/kg only induced a 0.3 log reduction in HBsAG – far short of what Defendant previously suggested.
On this news, Arrowhead stock fell $5.48 per share, or almost 44%, on extraordinary volume from its previous closing price to close at $7.03 per share on October 8, 2014.
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.