Prothena Corporation Public Limited Company (PRTA) Accused of Misrepresenting Its Drug's Prospects for Approval

According to the class action complaint, Prothena Corporation Public Limited Company (PRTA) officials touted the "exciting findings" of Prothena's ongoing Phase 1/2 clinical study of NEOD001 as evidence that the drug was effective. Prothena even stated that the results showed improvements in all three organ systems measured in the study and led investors to believe that NEOD001 would obtain final approval after completion of the studies. However, Prothena withheld trial data that showed NEOD001 was not an effective treatment for AL amyloidosis and created the false impression that the drug was effective. On April 23, 2018, Prothena announced it was ending all development of NEOD001 after data from its Phase 2b PRONTO trial showed that the drug failed to reach either its primary or secondary endpoints and was substantially less effective than a placebo. On this news, Prothena's stock plummeted nearly 69%, closing at $11.50 per share on April 23, 2018, and has yet to regain its lost value.

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