OvaScience Is Accused of Filing Misleading Registration Statement
According to a class action complaint filed on behalf of OvaScience shareholders, OvaScience sold 2,300,000 shares of common stock for $50 per share on January 8, 2015. In connection with the Offering, OvaScience represented in its Registration Statement that AUGMENT, a procedure developed by OvaSceince founders, would greatly improve egg quality and enhance the in vitro fertilization (“IVF”) process. Both before and after the Offering, OvaScience officials touted the high success rates of IVF with AUGMENT, citing numerous studies and congratulating themselves on the revenue this program would generate in the near future. In fact, officials stated in the Offering materials that they expected to enroll 1,000 AUGMENT patients in 2015 and that they would generate revenue. However, the complaint alleges that OvaScience issued untrue statements and failed to disclose that the very science behind AUGMENT was untested and in doubt. Furthermore, the patients who actually received OvaScience’s AUGMENT procedure in 2014 did not have a higher success rate for pregnancy than the rate achieved without the procedure. In addition, on September 28, 2015, the company issued a press release announcing their inability to meet the 2015 goal of 1,000 AUGMENT treatment cycles. Since the inefficacy of AUGMENT has come to light, Ovascience stock has fallen drastically – over 97% since the Offering.