Bragar Eagel & Squire, P.C. reminds investors that a class action lawsuit has been filed in the United States District Court for the District of Massachusetts on behalf of all investors that purchased Karyopharm, Inc. (NASDAQ: KPTI) securities between March 2, 2017 to February 22, 2019 (the Class Period). Investors have until September 23, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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The Complaint, filed on July 23, 2019, 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%.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information concerning the Karyopharm class action please go to https://bespc.com/KPTI. For additional information about Bragar Eagel & Squire, P.C. please go to www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.