NEW YORK, May 10, 2013 /PRNewswire/ -- Bernstein Liebhard LLP today announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of a class (the "Class") of purchasers of Ventrus Biosciences, Inc. ("Ventrus" or the "Company") (NASDAQ: VTUS) securities between December 17, 2010 and June 25, 2012 (the "Class Period").
Ventrus is a development stage pharmaceutical company which is focused on late-stage prescription drugs for the treatment of gastrointestinal disorders, specifically hemorrhoids, anal fissures, and fecal incontinence. Ventrus' lead products are topical treatments for hemorrhoids, which target a specific serotonin receptor.
Plaintiffs allege that, throughout the Class Period, the Company made false and/or misleading statements, as well as failed to disclose material adverse facts concerning the Company's lead product iferanserin (VEN 309) ("VEN 309"). The Company described VEN 309 as a new chemical entity for the topical treatment of symptomatic internal hemorrhoids. The Company stated that in seven clinical studies between 1993 and 2003, VEN 309 demonstrated good tolerability and no severe adverse events while showing statistically significant improvements in bleeding, itchiness, and pain.Specifically, during the Class Period the Company stated that it was in frequent and ongoing communications with the FDA, that clinical end points for the VEN 309 trial had been agreed to by the FDA, and that the prior results from Phase II trials of VEN 309 demonstrated the product's clinical efficacy. The Company represented its prior Phase IIb studies in Germany as evidence of VEN 309's efficacy and as support for their claims that FDA approval would be achieved. These false and misleading statements artificially inflated, maintained, and increased the price of Ventrus' common stock, reaching a high of $20.25 during the Class Period. On June 25, 2012, Ventrus issued a press release announcing that VEN 309 failed its Phase III trial before the FDA, and that the Company would abandon further development of VEN 309, including any further attempt to obtain FDA approval. In response to this news, the price of Ventrus common stock plummeted over 50% -- to $5.02 per share on June 25, 2012, resulting in millions of dollars in damages to investors. Plaintiffs seek to recover damages on behalf of all Class members who invested in Ventrus securities during the Class Period. If you invested in Ventrus securities as described above during the Class Period, and either lost money on the transaction or still hold the stock, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than July 8, 2013. 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. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.