Robbins Umeda LLP Announces an Investigation of BioMimetic Therapeutics, Inc.
Robbins Umeda LLP, a shareholder rights litigation firm, has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by certain officers and directors at BioMimetic Therapeutics, Inc. (NASDAQ: BMTI). BioMimetic Therapeutics is a biotechnology company specializing in the development and commercialization of regenerative protein drug-device products for the repair of orthopedic injuries. The company’s primary product is AugmentTM Bone Graft, a fully synthetic treatment for bone injuries and defects. The company was founded in 1999, and is headquartered in Franklin, Tennessee.
Robbins Umeda LLP is investigating whether officers and directors of BioMimetic Therapeutics breached their fiduciary duties to shareholders by issuing materially false and misleading statements to investors about the financial condition of the company and its future business prospects. In particular, we are examining statements by officers at BioMimetic Therapeutics to determine if they deceived investors about the safety and efficacy of the company’s AugmentTM product line, the success of on-going clinical trials, and the likelihood that the company’s signature product would receive approval from the U.S. Food and Drug Administration (“FDA”).
On May 12, 2011, the FDA published briefing documents about the product that detailed the agency’s “concerns with the safety and overall risk/benefit of the device … primarily due to the unanswered question of safety in regards to the potential for cancer formation.” The FDA briefing also cited concerns about both the size and the significance of results in the company’s clinical trial. After news of the FDA briefing broke, shares of BioMimetic Therapeutics lost over 35% of their value and closed as low as $8.11 on May 13, 2011.
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