SAN DIEGO, July 7, 2015 /PRNewswire/ -- Shareholder
rights law firm Robbins Arroyo LLP announces that a federal
securities fraud class action complaint was filed in the U.S.
District Court for the Southern District of California. The
complaint alleges that officers and directors of Celladon
Corporation (NASDAQ: CLDN) violated the Securities Exchange Act of
1934 between July 7, 2014 and
June 25, 2015, by making materially
false and misleading statements about Celladon's business
prospects. Celladon is a clinical-stage biotechnology company
that focuses on developing cardiovascular gene therapy and calcium
dysregulation. The company's lead product candidate is
MYDICAR, which was its first most promising investigational drug
for heart failure patients.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/celladon-corporation
Celladon Engages In Fraudulent Business
Practices
According to the complaint, on April 26,
2015, Celladon issued a press release announcing that its
CUPID2 trial of MYDICAR did not meet its goals. CUPID2 was a
placebo-controlled trial that was designed to evaluate the effects
of MYDICAR. Based on the favorable results in Celladon's
CUPID1 trial, it advanced MYDICAR to the CUPID2 trial.
However, the complaint alleges that Celladon's success in its
CUPID1 trial was not indicative of success in its CUPID2 trial
since its CUPID1 trial was extremely small. Further, the
company's top officers were aware of the limitations of the results
from the CUPID1 trial in predicting the success of the CUPID2
trial. When Celladon reported that the trial failed to show a
significant treatment effect, its stock plummeted $11.64 per share, or 80%, to close at
$2.64 per share on April 27, 2015.
The complaint further alleges that Celladon artificially
inflated the prices of its publicly traded securities and permitted
company insiders to sell their stock at artificially inflated
prices. On June 26, 2015,
Celladon announced the suspension of its plans for further research
or development of its MYDICAR program and further indicated the
company could be liquidated. On this news, Celladon stock
dropped $0.85 per share, or 39%, to
close at $1.35 per share.
Celladon Shareholders Have Legal Options
Concerned shareholders who would like more information about
their rights and potential remedies can contact attorney
Darnell R. Donahue at (800)
350-6003, DDonahue@robbinsarroyo.com, or via the shareholder
information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
shareholder rights law. The firm represents individual and
institutional investors in shareholder derivative and securities
class action lawsuits, and has helped its clients realize more than
$1 billion of value for themselves
and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a
similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, CA 92101
DDonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
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SOURCE Robbins Arroyo LLP