Wolf Haldenstein Adler Freeman & Herz LLP announces that a class action lawsuit has been filed in the United States District Court, District of Connecticut, on behalf of all persons who purchased or otherwise acquired common stock of Achillion Pharmaceuticals, Inc. (“Achillion” or the “Company”) (NASDAQ GS:ACHN) between August 8, 2012 and September 30, 2013, inclusive (the “Class Period”), against the Company and certain of the Company’s officers (“Defendants”), alleging securities fraud pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [15 U.S.C. §§ 78j(b) and 78t(a)] and Rule 10b-5 promulgated thereunder by the SEC [17 C.F.R. § 240.10b-5].
The litigation is styled Jiang v. Achillion Pharmaceuticals, Inc., C.A. No. 3:13-cv-01543. A copy of the Complaint filed in this action is available from the Court, or can be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP website at www.whafh.com.
The Complaint alleges that during the Class Period, Achillion engaged in a fraudulent scheme to artificially inflate the Company’s stock price by disseminating materially false and misleading statements concerning its clinical trials of the drug sovaprevir. The Company falsely represented that sovaprevir, one of the protease inhibitor compounds in its portfolio of oral treatments for the hepatitis C virus, was well-tolerated and had a low potential for drug-drug interactions. Indeed, Achillion touted the results of its clinical tests even though, in July 2013, the United States Food and Drug Administration (“FDA”) placed a clinical hold on sovaprevir after elevations in liver enzymes were noted in a phase 1 interaction study.
As recently as September 10, 2013, while the FDA’s clinical hold was still in place, the Company’s CEO, Milind S. Deshpande, stated in an investor presentation that Achillion would likely “receive a favorable response from the [FDA]” and projected, with a “99.99% confidence interval,” that there would be “no overlap between the exposures … with  clinical doses versus the exposure … in the [drug-drug interaction] study.” Despite the Company’s repeated assurances, on September 27, 2013, Achillion announced that the FDA ultimately concluded that the removal of the clinical hold was not warranted. On this news, shares of Achillion fell $4.30 per share, more than 59.53% on intraday trading, to $2.94 per share on September 30, 2013.