Rain Oncology Inc. (RAIN) Misled Investors Regarding the Viability of its Lead Drug Candidate Milademetan
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Rain Oncology Inc. (NASDAQ: RAIN) securities between July 20, 2021 and May 19, 2023. Rain Oncology is a late-stage precision oncology company that develops therapies that target oncogenic drivers to genetically select patients in the United States.
According to the complaint, Rain’s lead drug candidate was milademetan, a drug designed to treat dedifferentiated liposarcoma (“DD LPS”). Rain first licensed milademetan from Daiichi Sankyo Company, Limited, in September 2020 based on positive results from a Phase 1 clinical trial. Instead of conducting additional trials to test the safety and dosing of milademetan, Rain proceeded straight to a Phase 3 clinical trial. Rain referred to the Phase 3 trial as the “MANTRA” trial.
Rain commenced the MANTRA trial in July 2021. For nearly two years, Rain provided the market with false and misleading information about the trial’s design quality and approval risks for milademetan related to its clinical development strategy. Then, on Monday, May 22, 2023, defendants announced topline data from the MANTRA trial, revealing that milademetan had failed to show statistical significance on the trial’s primary endpoint and that the Company was abandoning further pursuit of milademetan for treating DD LPS. On this news, the price of Rain stock fell $8.71 per share to close at $1.22 on May 22, 2023, a nearly 88% loss in value.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Rain Oncology Inc. Shareholders who want to act as lead plaintiff for the class must file their motion with the court by September 12, 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.
