NEW YORK, Feb. 12, 2016 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against OvaScience, Inc. (“OvaScience” or the “Company”) (Nasdaq:OVAS) in the Suffolk County Superior Court for the Commonwealth of Massachusetts. The Complaint alleges that officers and directors of OvaScience violated the Securities Act of 1933 in connection with the Company’s January 8, 2015 Secondary Offering (the “Offering”) when they sold 2.3 million shares of common stock at an offering price of $50.00 per share
The Complaint alleges that the documents filed in connection with the Offering contained materially false and misleading statements and omissions, including that the approximately 150 patients that had received OvaScience’s AUGMENT procedure in 2014 did not achieve a pregnancy success rate that was significantly higher than the rate achieved without its AUGMENT procedure. When the true details entered the market, the lawsuit claims that investors suffered damages.
The truth began to emerge on March 26 and 28, 2015, when the company reported results of IVF clinics utilizing the AUGMENT procedure, disclosing a 53% and a 25% success rate, respectively. These success rates were comparable to the success rate achieved for a woman using IVF without AUGMENT. On March 30, 3015, a Wainwright & Co. analyst questioned the Company’s AUGMENT data pregnancy rate calculation, stating that an alternative representation of the data would result in a 35% success rate rather than the 53% success rate declared by OvaScience. Then, on April 6, 2015, the Southern Investigative Reporting Foundation published an article that challenged the reported 53% clinical pregnancy rate. The article suggested that the AUGMENT procedure data did not achieve a significant success rate of clinical pregnancies compared to previous rates achieved without the Company’s AUGMENT procedure. On September 28, 2015, OvaScience issued a press release announcing that it does not expect to meet the 2015 goal of 1,000 AUGMENT treatment cycles. On this news, the Company stock fell by $5.95 per share, or over 40%, to close at $8.57 per share on September 29, 2015. The stock has plummeted by over 77% since its Offering.
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.
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