Health & Fitness
Mon, August 9, 2010Fri, August 6, 2010Thu, August 5, 2010Wed, August 4, 2010Tue, August 3, 2010Mon, August 2, 2010Fri, July 30, 2010Thu, July 29, 2010Wed, July 28, 2010Tue, July 27, 2010Mon, July 26, 2010Fri, July 23, 2010Thu, July 22, 2010Wed, July 21, 2010Tue, July 20, 2010Mon, July 19, 2010Sun, July 18, 2010Robbins Geller Rudman & Dowd LLP Files Class Action Suit against XenoPort, Inc.
Published in Health and Fitness on Wednesday, July 28th 2010 at 11:55 GMT by Market Wire
SAN DIEGO--([ BUSINESS WIRE ])--Robbins Geller Rudman & Dowd LLP (aRobbins Gellera) ([ http://www.rgrdlaw.com/cases/xenoport/ ]) today announced that a class action has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of XenoPort, Inc. (aXenoPorta) (NASDAQ:XNPT) common stock during the period between May 5, 2009 and February 17, 2010 (the aClass Perioda).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffa™s counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at [ djr@rgrdlaw.com ]. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at [ http://www.rgrdlaw.com/cases/xenoport/ ]. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges XenoPort and certain of its officers and directors with violations of the Securities Exchange Act of 1934. XenoPort is a biopharmaceutical company focused on developing a portfolio of internally discovered product candidates that utilize the bodya™s natural nutrient transport mechanisms to improve the therapeutic benefits of existing drugs.
The complaint alleges that during the Class Period, defendants publicized misleading and incomplete information about XenoPorta™s Phase 3 clinical program for an extended-release tablet and development stage drug called Horizant (gabapentin enacarbil), also known as XP13512 (a512a), as a potential treatment for moderate-to-severe primary Restless Legs Syndrome (aRLSa), including that there was strong evidence of safety and indicating that it remained on track, creating an opportunity for the Company to raise money. However, the Companya™s top management was aware that 512 had earlier shown an increased occurrence of pancreatic cancer in lab rats. While the drug had nonetheless been approved for more serious indications, this presented a risk that the FDA would not approve 512 for less serious maladies given the devastating impact of pancreatic cancer. Instead of disclosing these findings, which would have affected the publica™s expectations about the likelihood of FDA approval, defendants repeatedly assured the public as to 512a™s safety and efficacy. As a result of these false and misleading statements, XenoPort stock traded at artificially inflated prices during the Class Period, reaching a high of $24.75 per share on September 17, 2009 and permitting the Company to complete a secondary offering in July 2009 of 2.875 million shares of XenoPort stock at $19 per share for proceeds of nearly $45 million.
On February 17, 2010, defendants publicly disclosed that the FDA had declined approval of Horizant, with concerns about laboratory results showing pancreatic cell tumors in rats as a result of the use of the drug. On this news, XenoPorta™s stock fell $12.93 per share to close at $6.67 per share on February 18, 2010 a" a one-day decline of 65% on volume of 36.5 million shares, over 16 times the average three-month daily volume.
Plaintiff seeks to recover damages on behalf of all purchasers of XenoPort common stock during the Class Period (the aClassa). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller, a 180-lawyer firm with offices in San Diego, San Francisco, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Robbins Geller Web site ([ http://www.rgrdlaw.com ]) has more information about the firm.
