This Day On The Street
Continue to site
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

Ventrus Biosciences, Inc. Sued By Investor

SAN DIEGO and NEW YORK, May 17, 2013 /PRNewswire/ --  Shareholder rights attorneys at Robbins Arroyo LLP announce that a shareholder of Ventrus Biosciences, Inc. (NASDAQ: VTUS) filed a federal securities fraud class action complaint on May 9, 2013, in the U.S. District Court for the Southern District of New York.  The complaint alleges that Ventrus and certain of its officers and directors violated the Securities Exchange Act of 1934 between December 17, 2010 and June 25, 2012 (the "Class Period").  Ventrus is a pharmaceutical company that specializes in the development and commercialization of late-stage prescription drugs for gastrointestinal disorders.

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

Ventrus Accused of Making False and Misleading Statements Concerning the Company's Lead Product, Iferanserin VEN 309

According to the complaint, Ventrus and certain of its officers and directors, made materially false and misleading statements during the Class Period and failed to disclose material adverse facts about the company's lead product, iferanserin VEN 309, a topical treatment for symptomatic internal hemorrhoids. Specifically, the complaint alleges that Ventrus falsely represented that: (i) iferanserin VEN 309 was a one-of-a-kind product that had no competing FDA approved comparisons; (ii) iferanserin VEN 309 would be the only product approved for use as a prescription treatment for hemorrhoids; (iii) the prior phase II and IIB studies of iferanserin VEN 309 demonstrated a consistent reduction of hemorrhoidal symptoms; (iv) the company had the ability to market iferanserin VEN 309 to 12.5 million potential patients; and (v) the Phase III of the trial of iferanserin VEN 309 was low risk in comparison to other therapeutic drug development programs.

The complaint also alleges that Ventrus touted its communications with the Federal Drug Administration as frequent and ongoing as evidence that FDA approval for iferanserinVEN 309 would be achieved. Moreover, the company's misrepresentations of iferanserin VEN 309 allowed Ventrus to raise over $70 million through its December 17, 2010 initial public offering and a subsequent offering approximately one month prior to disclosing the truth to its shareholders.

The Truth Is Revealed and Ventrus' Stock Price Drops

One June 25, 2012, Ventrus issued a press release announcing that iferanserin VEN 309 failed its Phase III trial. Additionally, Ventrus disclosed that it would abandon further development of iferanserin VEN 309 and would no longer attempt to obtain FDA approval. In response to this news, Ventrus' stock plunged over 50%, to close at $5.02 per share on June 25, 2012.

If you purchased or otherwise acquired Ventrus 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: www.robbinsarroyo.com/shareholders-rights-blog/ventrus-biosciences-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
Only $9.95
14-Days Free
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
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs