NEW YORK, Dec. 09, 2020 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Minerva Neurosciences, Inc. (“Minerva” or the “Company”) (NASDAQ: NERV) in the United States District Court for the District of Massachusetts on behalf of those who purchased or acquired the securities of Minerva between May 5, 2017 and November 30, 2020, inclusive (the “Class Period”). The lawsuit seeks to recover damages for Minerva investors under the federal securities laws.
The Complaint alleges that Defendants made materially false and misleading statements regarding the Company’s business. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the truth about the feedback received from the FDA concerning the “end-of-Phase 2” meeting; (2) the Phase 2b study did not use the commercial formulation of roluperidone and was conducted solely outside of the United States; (3) the failure of the Phase 3 study to meet its primary and key secondary endpoints rendered that study incapable of supporting substantial evidence of effectiveness; (4) the Company’s plan to use the combination of the Phase 2b and Phase 3 studies would be “highly unlikely” to support the submission of an NDA; (5) reliance on these two trials in the submission of an NDA would lead to “substantial review issues” because the trials were inadequate and not well-controlled; and (6) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On May 29, 2020, Minerva released the results of its Phase 3 clinical trial. The Company announced that the studied “doses were not statistically significantly different from placebo at Week 12 on the primary endpoint . . . or the key secondary endpoint.” In other words, the Phase 3 clinical trial failed. On this news, the Company’s stock price plummeted from a May 28, 2020 closing price of $13.47 per share to a May 29, 2020 closing price of just $3.71 per share.
Investors who purchased or otherwise acquired shares of Minerva during the Class Period should contact the Firm prior to the February 8, 2021 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish 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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