NEW YORK, Aug. 24, 2015 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Celladon Corporation (“Celladon” or the “Company”) (NASDAQ:CLDN) and certain of its officers. The class action, filed in United States District Court, Southern District of California, is on behalf of a class consisting of all persons or entities who purchased Celladon securities between July 7, 2014 and June 25, 2015 inclusive (the “Class Period”). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who purchased Celladon securities during the Class Period, you have until August 31, 2015 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Celladon is a clinical-stage biotechnology company which is focused on the development of cardiovascular gene therapy and calcium dysregulation. The Company’s lead product candidate is MYDICAR® (“MYDICAR”), which uses genetic enzyme replacement therapy to correct the Sarco/endoplasmic reticulum Ca2+-ATPase, or “SERCA2a,” enzyme deficiency in heart failure patients that results in inadequate pumping of the heart.
The Complaint alleges that throughout the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding the prospects for MYDICAR, the Company's first most promising investigational drug for heart failure patients. Among the undisclosed material information was that: (i) the success in the CUPID1 trials was really not indicative of any success in the CUPID2 trials since the CUPID1 trial was extremely small, and (ii) the Company's existence was tied to trial results of which limitations Defendants were aware.
On April 26, 2015, Celladon issued a press release announcing that the Company’s Phase 2b CUPID2 trial of MYDICAR did not meet its primary and secondary goals. CUPID2 was a randomized, double-blind, placebo-controlled multinational trial evaluating a single, one-time, intracoronary infusion of MYDICAR versus placebo added to a maximal, optimized heart failure drug and device regimen. The Company reported that “the primary endpoint comparison of MYDICAR to placebo resulted in a hazard ratio of 0.93 (0.53, 1.65 95%CI) (p=0.81), defined as heart failure-related hospitalizations or ambulatory treatment for worsening heart failure” and the “secondary endpoint comparison of MYDICAR to placebo, defined as all-cause death, need for a mechanical circulatory support device, or heart transplant, likewise failed to show a significant treatment effect.”
As a result of this news, the price of Celladon stock plummeted $11.04 per share to close at $2.64 per share on April 27, 2015, a decline of 80% on volume of 32 million shares.
On June 1, 2015, Celladon issued a press release announcing the abrupt resignation of defendant Krisztina M. Zsebo (“Zsebo”) as Chief Executive Officer (“CEO”) and a director.
Then, on June 26, 2015, before the market opened, Celladon issued a press release announcing the suspension of its plans for further research or development of its MYDICAR program and other pre-clinical programs, and indicating the possibility that the Company could be liquidated with net cash available to shareholders of $25-$30 million.
As a result of this news, the price of Celladon stock dropped $0.85 per share to close at $1.35 per share on June 26, 2015, a decline of 38% on volume of 9 million shares.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com