Xoma Corporation investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, Xoma is a biotech drug company that purports to discover and develop innovative antibody-based therapeutics. The company’s lead product candidate is gevokizumab, which Xoma describes as “a proprietary potent, humanized allosteric-modulating monoclonal antibody that binds to the inflammatory cytokine interleukin-1 beta (“IL-1 beta”).” According to the company, gevokizumab “has the potential to address the underlying inflammatory causes of a wide range of diseases that have been identified as having unmet medical needs.”
The complaint alleges that since November 6, 2014, Xoma has repeatedly made material misrepresentations and omitted material information concerning the imminently commercialization of gevokizumab. Specifically, the complaint alleges that company made misrepresentations and omitted information that led the investors to believe that the Phase 3 EYEGUARD-B study of gevokizumab, would be concluded successfully and that approval from the U.S. Food and Drug Administration (“FDA”) would then be sought.
The beginning of the Class Period start on November 6, 2014, when the company issued a press release announcing its results for the quarter ended September 30, 2014. The complaint alleges that on May 7, 2015, after the close of the market, John W. Varian, Chief Executive Officer and director, told the market that gevokizumab was “one exacerbation away from being able to close the EYEGUARD-B study database” and that investors should expect to “be getting to that final targeted exacerbation any day now.” Following this news, the trading volume of Xoma increased and its share price climbed over 12%, from the closing at $3.29 on May 7, 2015, to close at $3.70 on May 8, 2015.
Then, on July 22, 2015, Xoma revealed that the gevokizumab EYEGUARD-B study did not meet the primary endpoint of first acute ocular exacerbation. Following this news, the price of Xoma common stock dropped. The share price fell $3.48, or over 79%, in premarket trading, from a closing share price of $4.39 on July 21, 2015 to open at $0.91 per share on July 22, 2015 on heavy trading volume.
If you are a member of the class described above, you may no later than September 22, 2015, move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org. For more information about Kessler Topaz Meltzer & Check, LLP, please visit our website at http://www.ktmc.com. If you would like additional information about the suit, please fill out the attached form as promptly as possible and return it by fax to 610-667-7056, or by mail in the enclosed envelope.
Kessler Topaz Meltzer & Check, LLP
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