Robbins LLP: Abeona Therapeutics Inc. (ABEO) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a class action complaint was filed against Abeona Therapeutics Inc. (NASDAQCM: ABEO) in the U.S. District Court for the Southern District of New York. The complaint is brought on behalf of all purchasers of PlasmaTech securities between March 31, 2015 and June 19, 2015, and all purchasers of Abeona securities from June 22, 2015 to December 9, 2016, for alleged violations of the Securities Exchange Act of 1934 by Abeona’s officers and directors. Abeona focuses on developing and delivering gene therapy and plasma-based products for severe and life-threatening rare diseases. Abeona’s lead programs are ABO-101 and ABO-102, adeno-associated virus-based gene therapies for Sanfilippo syndrome.
Abeona Accused of Lying About the Efficacy of Its Gene Therapies
According to the complaint, Abeona submitted a series of filings with the U.S. Securities and Exchange Commission attesting to the accuracy of financial reporting, the disclosure of any material changes to the company’s internal control over financial reporting, and the disclosure of all fraud. Abeona touted that a single dose of ABO-101 and ABO-102 significantly restored normal cell and organ function, corrected cognitive defects that remained months after drug administration, and increased neuromuscular control. However, the complaint alleges that Abeona failed to disclose that the science behind its proposed gene therapy treatment for Sanfilippo syndrome is unviable and that the company’s Executive Chairman and Principal Executive Officer, Steven H. Rouhandeh (“Rouhandeh”), previously worked in a high ranking position for a biotech promoter who was convicted of securities fraud and involved in manipulating biotech stocks.
On December 12, 2016, analyst firm Mako Research published a report on the company, noting that the delivery mechanism of Abeona’s proposed gene therapy is inferior to existing studies from other companies with superior delivery mechanisms and that the company is “attempting to clear a bar that is so low that it’s essentially meaningless, meaning whatever their trial shows should be clinically worthless.” The report also claimed that Rouhandeh “blazed a trail of shareholder destruction in lousy biotech stocks” and that his tenure at the biotech stock promoter was omitted from his recent, publicly available business background profiles. On this news, Abeona’s stock fell $0.70 per share, or over 13%, to close at $4.45 per share on December 12, 2016.
Abeona 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, or you can complete the form below and we will contact you directly.