Ventrus Biosciences, Inc. Sued by Investor
Robbins LLP announce that a shareholder of Ventrus Biosciences, Inc. (NASDAQ: VTUS) filed a federal securities fraud class action complaint on May 9, 2013, in the U.S. District Court for the Southern District of New York. The complaint alleges that Ventrus and certain of its officers and directors violated the Securities Exchange Act of 1934 between December 17, 2010 and June 25, 2012 (the “Class Period”). Ventrus is a pharmaceutical company that specializes in the development and commercialization of late-stage prescription drugs for gastrointestinal disorders.
Ventrus Accused of Making False and Misleading Statements Concerning the Company’s Lead Product, Iferanserin VEN 309
According to the complaint, Ventrus and certain of its officers and directors, made materially false and misleading statements during the Class Period and failed to disclose material adverse facts about the company’s lead product, iferanserin VEN 309, a topical treatment for symptomatic internal hemorrhoids. Specifically, the complaint alleges that Ventrus falsely represented that: (i) iferanserin VEN 309 was a one-of-a-kind product that had no competing FDA approved comparisons; (ii) iferanserin VEN 309 would be the only product approved for use as a prescription treatment for hemorrhoids; (iii) the prior phase II and IIB studies of iferanserin VEN 309 demonstrated a consistent reduction of hemorrhoidal symptoms; (iv) the company had the ability to market iferanserin VEN 309 to 12.5 million potential patients; and (v) the Phase III of the trial of iferanserin VEN 309 was low risk in comparison to other therapeutic drug development programs.
The complaint also alleges that Ventrus touted its communications with the Federal Drug Administration as frequent and ongoing as evidence that FDA approval for iferanserinVEN 309 would be achieved. Moreover, the company’s misrepresentations of iferanserin VEN 309 allowed Ventrus to raise over $70 million through its December 17, 2010 initial public offering and a subsequent offering approximately one month prior to disclosing the truth to its shareholders.
The Truth Is Revealed and Ventrus’ Stock Price Drops
One June 25, 2012, Ventrus issued a press release announcing that iferanserin VEN 309 failed its Phase III trial. Additionally, Ventrus disclosed that it would abandon further development of iferanserin VEN 309 and would no longer attempt to obtain FDA approval. In response to this news, Ventrus’ stock plunged over 50%, to close at $5.02 per share on June 25, 2012.
If you purchased or otherwise acquired Ventrus during the Class Period and wish to serve as lead plaintiff, you must act no later than July 8, 2013. To discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003 or you can complete the form below and we will contact you directly.