This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Aveo Pharmaceuticals, Inc. Sued By Investor

SAN DIEGO and CAMBRIDGE, Mass., May 17, 2013 /PRNewswire/ --  Shareholder rights attorneys at Robbins Arroyo LLP announce that a purchaser of Aveo Pharmaceutical, Inc. (NASDAQGS: AVEO) securities has filed a complaint in the U.S. District Court for the District of Massachusetts.  The complaint alleges that Aveo and certain of its officers violated the Securities Exchange Act of 1934 (the "Exchange Act") between January 3, 2012 and May 1, 2013 (the "Class Period").

(Logo: http://photos.prnewswire.com/prnh/20130103/MM36754LOGO)

Aveo Accused of Making False and Misleading Statements Concerning the Company's Business Prospects

The complaint alleges that Aveo, a biopharmaceutical company that focuses on discovering, developing, and commercializing cancer therapies, issued a series of materially false and misleading statements to investors regarding the viability of the company's lead drug Tivopath (or tivozanib).  Specifically, the complaint alleges that the defendants misled investors to believe that Tivopath would receive approval from the U.S. Food and Drug Administration ("FDA") by touting Tivopath's Phase III trial design and results.  The complaint accuses the defendants of violations of the Exchange Act by virtue of their failure to disclose during the Class Period that: (i) the FDA had recommended that Aveo conduct an additional Phase 3 trial for Tivopath due to adverse trends in the company's first Phase III trial; (ii) there was a 25% higher rate of death associated with Tivopath, compared to the control drug, Sorafenib; and (iii) nearly 90% of the patients studied in the company's Phase III trial were enrolled from sites in Central and Eastern Europe, where treatment patterns were inconsistent with those in the United States.   

Aveo Price Drops Multiple Times

On April 30, 2013, the FDA released its Oncologic Drugs Advisory Committee ("ODAC") briefing document (the "Briefing Document") that, among other matters, took particular issue with the rigor of Tivopath's Phase III trial.  The Briefing Document also highlighted the regulatory history of Tivopath, and the fact that Aveo disregarded explicit FDA recommendations that the company conduct an additional Phase III trial.  On this news, Aveo's stock declined $2.33 per share or over 31%, to close at $5.11 per share on April 30, 2013.

Moreover, on May 2, 2013, the ODAC voted by an overwhelming majority (13 to 1) not to recommend approval of Tivopath, because "the application ... did not demonstrate a favorable benefit-to-risk evaluation for the treatment of advanced renal cell carcinoma (RCC) in an adequate and well-controlled trial."  As a result, Aveo shares declined a further $2.61 per share or nearly 50%, to close at $2.65 on May 2, 2013.

If you purchased or otherwise acquired Aveo stock during the Class Period and wish to serve as lead plaintiff, you must act no later than July 8, 2013. To discuss your  shareholder rights, please 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 securities litigation and 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. For more information, please go to  http://www.robbinsarroyo.com.

Press release link: http://www.robbinsarroyo.com/shareholders-rights-blog/aveo-pharmaceuticals-inc/

Attorney Advertising. Past results do not guarantee a similar outcome.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs