NovoCure Limited (NVCR) Misled Investors Regarding the Viability and Efficacy of its LUNAR Study
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired NovoCure Limited (NASDAQ: NVCR) securities between January 5, 2023 and June 5, 2023. NovoCure Limited is an oncology company that engages in the development, manufacture, and commercialization of tumor treating fields devices for the treatment of solid tumor cancers.
According to the complaint, during the class period, defendants failed to disclose that: (i) the Company concealed the true nature of the LUNAR study results—that the overwhelmingly positive way that the Company described them was only a half-truth at best given that the study failed to evaluate the efficacy of the drug against a population of patients that had been receiving standard of care treatment; (ii) as a result, the Company’s business prospects, effectiveness of its products, and ultimately the likelihood of FDA approval were materially misleading during the class period; (iii) the foregoing, once revealed, was reasonably likely to have a material negative impact on the Company’s financial condition; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On January 5, 2023, defendants announced topline results from the Company’s LUNAR Study. The announcement disclosed positive data, but concealed negative data.
On June 6, 2023, the long-anticipated presentation of NovoCure’s LUNAR study’s full results were presented at the American Society of Clinical Oncology’s annual meeting. While the results were positive on the whole, there was an underlying problem with the data set utilized in the study. The Company revealed that a relatively small percentage of study participants had been receiving standard of care therapy (i.e., immune checkpoint inhibitors), thereby rendering the study’s results unreliable in terms of demonstrating clinical efficacy. On this news, NovoCure’s stock dropped from June 5th’s closing price of $82.51 to June 6th closing price of $47—a loss of $35.51 per share—or 43% of its value.
What Now: Similarly situated shareholders may be eligible to participate in the class action against NovoCure Limited. Shareholders who want to act as lead plaintiff for the class must file their papers by August 18, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
