Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Arena Pharmaceuticals, Inc. ("Arena" or the "Company") (NASDAQ: ARNA). Arena, a clinical-stage biopharmaceutical company, focuses on discovering, developing, and commercializing oral drugs in the therapeutic areas of cardiovascular, central nervous system, inflammatory, and metabolic diseases. The Company was founded in 1997 and is based in San Diego, California.
Robbins Umeda LLP's investigation concerns whether the Company's directors and officers caused the Company to issue materially false and misleading statements. Specifically, the investigation concerns whether these directors and officers omitted and failed to disclose material information concerning the safety, efficacy, and tolerability of Arena's weight loss drug, Lorqess, which undermined the Company's New Drug Application for Lorqess.
On September 14, 2010, the U.S. Food and Drug Administration (the "FDA") disclosed a briefing document containing the results of the rat carcinogenicity studies of Lorqess. The FDA's briefing document revealed that Lorqess caused cancer in rats in certain pre-clinical studies. Upon this news, the Company's value fell from $6.85 on September 13, 2010, to close at $4.13 on September 14, 2010, a one day decline of $2.72, or approximately 40%. Then, on September 16, 2010, the Wall Street Journal reported that the FDA's advisory committee held a meeting to review Lorqess and rejected the drug in light of the concern that long-term use of the drug posed various risks, including cancer, which outweighed its benefits. As a result of this news, Arena's value fell again from $3.74 per share on September 16, 2010, to close at $1.99 per share on September 17, 2010, a one day decline of nearly 46%.
If you are a shareholder of Arena, plan to continue to hold your shares, and would like more information about your rights as a shareholder, please contact attorney Gregory E. Del Gaizo at 800-350-6003 or by e-mail at firstname.lastname@example.org.Robbins Umeda LLP is a California-based law firm, which has significant experience representing investors in shareholder derivative actions, securities fraud class actions, and merger-related shareholder class actions. For more information about the firm, please go to http://www.robbinsumeda.com. Advertisement