Gainey McKenna & Egleston Announces a Class Action Lawsuit Has Been Filed Against Celladon Corporation (CLDN)


NEW YORK, July 06, 2015 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Southern District of California on behalf of all persons or entities who purchased Celladon Corporation (“Celladon” or the “Company”) (Nasdaq:CLDN) securities between July 7, 2014 and June 25, 2015, inclusive (“Class Period”), alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).

The Complaint alleges that Defendants’ made false and misleading statements regarding the Company’s prospects for its lead drug candidate, MYDICAR, for treating enzyme deficiency in heart failure patients that results in inadequate pumping of the heart.  As a result of these false and misleading statements, the Complaint alleges that the Company’s securities traded at artificially inflated prices during the Class Period.

On April 26, 2015, the Company announced that its Phase 2b CUPID2 trial of MYDICAR did not meet its primary and secondary goals.  The Company reported that “the primary endpoint comparison of MYDICAR to placebo resulted in a hazard ratio of 0.93 (0.53, 1.65 95%CI) (p=0.81), defined as heart failure-related hospitalizations or ambulatory treatment for worsening heart failure” and the “secondary endpoint comparison of MYDICAR to placebo, defined as all-cause death, need for a mechanical circulatory support device, or heart transplant, likewise failed to show a significant treatment effect.”  As a result of this news, the price of the Company stock fell $11.04 per share to close at $2.64 per share on April 27, 2015, a decline of 80% on volume of 32 million shares.

On June 1, 2015, the Company issued a press release announcing the abrupt resignation of its Chief Executive Officer.  On June 26, 2015, before the market opened, the Company announced the suspension of its plans for further research or development of its MYDICAR program and other pre-clinical programs, indicating there was a possibility that the Company could be liquidated with net cash available to shareholders of $25-$30 million.  As a result of this news, the price of the Company stock dropped $0.85 per share to close at $1.35 per share on June 26, 2015, a one-day decline of 38% on volume of 9 million shares, and a 95% decline from the stock's Class Period high price.

If you wish to serve as lead plaintiff, you must move the Court no later than August 31, 2015.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Attorney Advertising -- Prior results do not guarantee a similar outcome with respect to any future matter.  Please visit our website at http://www.gme-law.com for more information about the firm.