Rigrodsky & Long, P.A. announces that a class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of all persons or entities who purchased or otherwise acquired the common stock of AspenBio Pharma, Inc. (“AspenBio Pharma” or the “Company”) (Nasdaq: APPY) between February 22, 2007 and July 19, 2010, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 (the “Complaint”).
The Complaint names AspenBio Pharma and certain of the Company’s current and former executive officers and directors as defendants. AspenBio Pharma is a bio-pharmaceutical company, engaged in the discovery, development, and commercialization of products that address un-met diagnostic and therapeutic needs. Its lead products include AppyScore, a blood-based diagnostic test that evaluates patients suspected of having acute appendicitis for use in diagnosing appendicitis in the hospital emergency department setting.
The Complaint alleges that during the Class Period, defendants made materially false and misleading statements, and/or omitted material facts, concerning the efficacy of AppyScore, which was then undergoing clinical trial. It is alleged that AspenBio claimed that the AppyScore product was: (1) highly effective at detecting patients with a wide spectrum of different severities of appendicitis; (2) utterly unique and unprecedented in its targeted market; (3) extremely helpful in the emergency room context; and (4) able to reduce the incidence of appendicitis related false-positives and unnecessary surgeries.
On July 19, 2010, however, the Company announced that the clinical trial had shown that AppyScore possessed considerably lower specificity than predicted. As a result of these two disclosures, the price of AspenBio Pharma stock first fell from a close of $3.38 on June 4, 2010 to a close of $1.57 on June 7, 2010, and then from a close of $0.97 on July 19, 2010 to a close of $0.69 on July 20, 2010.