NEW YORK, July 23, 2019 /PRNewswire/ -- Bernstein Litowitz Berger & Grossmann LLP ("BLB&G") today announced that it filed a securities class action lawsuit on behalf of its client Allegheny County Employees' Retirement System ("ACERS") against Karyopharm Therapeutics Inc. ("Karyopharm" or the "Company") (KPTI), and certain of the Company's senior executives, Karyopharm's Board of Directors, and the underwriters of the Offerings, (collectively, "Defendants"). The action, which is captioned Allegheny County Employees' Retirement System v. Karyopharm Therapeutics Inc., No. 1:19-cv-11597 (D. Mass.) (the "Action"), asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 ("Exchange Act") on behalf of investors in Karyopharm common stock during the time period of March 2, 2017 and February 22, 2019 (the "Class Period"). The action also asserts claims under Sections 11, 12(a)(2), and 15 of the Securities Act of 1933 on behalf of all persons who purchased or otherwise acquired Karyopharm common stock in or traceable to the Company's public offerings of common stock conducted on or around April 28, 2017 and May 7, 2018 (the "Offerings").
The Complaint alleges that during the Class Period, Defendants falsely represented the safety and efficacy of selinexor, a pharmaceutical drug intended for the treatment of various types of cancer that Karyopharm was in the process of developing. Specifically, Defendants' material misrepresentations and omissions center on Defendants' claims regarding results from clinical trials for selinexor's treatment of patients with certain types of blood cancer. During the Class Period, Defendants claimed that selinexor studies showed that selinexor was "well-tolerated" by patients and explained that there were "no new clinically significant adverse events in the patients receiving selinexor." The Company repeatedly touted the commercial prospects for selinexor and consistently described selinexor as having a "predictable and manageable tolerability profile" and a "very nice safety profile." In reality, selinexor was unsafe with limited efficacy.
The truth was revealed on February 22, 2019, when the Federal Drug Administration ("FDA") released a briefing document that expressed serious concerns with selinexor. Specifically, the FDA revealed that, contrary to Karyopharm's assurances, one of the previously cancelled selinexor trials had resulted in "worse overall survival" for certain patients treated with selinexor, which "highlight[ed] the toxicity of this drug." The FDA unambiguously concluded that "[t]reatment with selinexor is associated with significant toxicity" and has "limited efficacy." These disclosures caused the Company's stock price to decline from $8.97 per share to $5.07 per share, or more than 43%.
A copy of the complaint filed in this Action is available on BLB&G's website at www.blbglaw.com.
If you wish to serve as Lead Plaintiff for the Class, you must file a motion with the Court no later than September 23, 2019, which is the first business day on which the U.S. District Court for the District of Massachusetts is open that is 60 days after the publication date of July 23, 2019. Any member of the proposed Class may move the Court to serve as Lead Plaintiff through counsel of their choice. Members may also choose to do nothing and remain part of the proposed Class.
ACERS is represented by BLB&G, a firm of over 100 attorneys with offices in New York, California, Louisiana, Illinois, and Delaware. If you wish to discuss this Action or have any questions concerning this notice or your rights or interests, please contact Avi Josefson of BLB&G at 212-554-1493, or via e-mail at email@example.com.
Since its founding in 1983, BLB&G has built an international reputation for excellence and integrity. Specializing in securities fraud, corporate governance, shareholders' rights, employment discrimination, and civil rights litigation, among other practice areas, BLB&G prosecutes class and private actions on behalf of institutional and individual clients worldwide. Unique among its peers, BLB&G has obtained several of the largest and most significant securities recoveries in history, recovering billions of dollars on behalf of defrauded investors. More information about BLB&G can be found online at www.blbglaw.com.
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