The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Reata Pharmaceuticals, Inc. (RETA) Investors
LOS ANGELES, Jan. 21, 2022
LOS ANGELES, Jan. 21, 2022 /PRNewswire/ -- The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Reata Pharmaceuticals, Inc. ("Reata" or the "Company") (NASDAQ: RETA) securities, and/or sold Reata put options, between November 9, 2020 and December 8, 2021, inclusive (the "Class Period"). Reata investors have until February 18, 2022 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On December 6, 2021, the U.S. Food and Drug Administration ("FDA") released briefing documents in advance of an Advisory Committee meeting for the Company's New Drug Application ("NDA") for bardoxolone methyl for chronic kidney disease caused by Alport syndrome, stating that throughout the clinical development, the agency had repeatedly questioned the validity of Reata's study design because bardoxolone's pharmacodynamic effect on kidney function would make the results difficult to assess the effectiveness of the drug. Though the FDA agreed that Reata's Phase 3 study met its endpoints, "the FDA review team d[id] not believe the submitted data demonstrate that bardoxolone is effective in slowing the loss of kidney function in patients with AS and reducing the risk of progression to kidney failure."
On this news, the Company's stock price fell $29.77, or 38%, to close at $48.92 per share on December 6, 2021, on unusually heavy trading volume.
Then, on December 8, 2021, the FDA's Advisory Committee unanimously decided that bardoxolone was not effective based on the submitted data.
On this news, the Company's stock price fell $25.31, or 46%, to close at $29.11 per share on December 9, 2021, on unusually heavy trading volume.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the FDA had raised concerns regarding the validity of the clinical study designed to measure the efficacy and safety of bardoxolone for the treatment of chronic kidney disease caused by Alport syndrome; (2) that, as a result, there was a material risk that Reata's NDA would not be approved; and (3) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you purchased Reata securities during the Class Period, you may move the Court no later than February 18, 2022 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Reata securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View original content to download multimedia:https://www.prnewswire.com/news-releases/the-law-offices-of-frank-r-cruz-announces-the-filing-of-a-securities-class-action-on-behalf-of-reata-pharmaceuticals-inc-reta-investors-301462541.html
SOURCE The Law Offices of Frank R. Cruz, Los Angeles