Robbins Arroyo LLP: OvaScience, Inc. (OVAS) Misled Shareholders According to a Recently Filed Class Action
09 February 2016 - 11:58AM
Business Wire
Shareholder rights law firm Robbins Arroyo LLP announces that a
class action complaint was filed in the Suffolk County Superior
Court for the Commonwealth of Massachusetts. The complaint alleges
that officers and directors of OvaScience, Inc. (NASDAQGM: OVAS)
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. OvaScience is a life science company that
develops and markets new treatments for infertility. Its AUGMENT
treatment, designed to improve the health of the woman's eggs, is
available in certain in vitro fertilization ("IVF") clinics in
select international regions.
View this information on the law firm's Shareholder Rights
Blog:www.robbinsarroyo.com/shareholders-rights-blog/ovascience-inc
OvaScience Accused of Misleading Investors About Its
Product's Success Rate
According to the complaint, OvaScience issued a Registration
Statement that failed to disclose that the approximately 150
patients that had received its AUGMENT procedure in 2014 did not
achieve a pregnancy success rate that was significantly higher than
the rate achieved without its AUGMENT procedure. It is alleged that
this omission artificially inflated the price of the company's
shares. Although any adverse events associated with the success
rate of AUGMENT treatment reasonably likely to have an impact on
OvaScience's profitability were required to be disclosed in the
company's Registration Statement, they were not.
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,
OvaScience 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.
OvaScience Shareholders Have Legal Options
Concerned shareholders who would like more information about
their rights and potential remedies can contact attorney Darnell R.
Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
shareholder rights law. The firm represents individual and
institutional investors in shareholder derivative and securities
class action lawsuits, and has helped its clients realize more than
$1 billion of value for themselves and the companies in which they
have invested.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20160208006439/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003DDonahue@robbinsarroyo.comwww.robbinsarroyo.com
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