SAN DIEGO and CAMBRIDGE, Mass., Feb. 4, 2014 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of Sarepta Therapeutics, Inc. (NASDAQ: SRPT) has filed a federal securities fraud class action complaint in the U.S. District Court for the District of Massachusetts. The complaint alleges that the company and certain of its officers violated the Securities and Exchange Act of 1934 between July 24, 2013 and November 12, 2013 (the "Class Period"). Sarepta is a biopharmaceutical company that develops RNA-based therapeutics for the treatment of rare and infectious diseases. Its lead product candidate is eteplirsen, which is in Phase IIb clinical development for the treatment of individuals with Duchenne muscular dystrophy.
Sarepta Is Accused of Misstating the Significance of Eteplirsen Data Set
According to the complaint, Sarepta shares initially fell $3.26 per share, or 7.8%, to close at $38.63 per share on October 30, 2013, following the publication of reports challenging the significance of Sarepta's Phase IIb eteplirsen study data set. Then, Sarepta shares fell an additional $23.40 per share, or 64%, to close at $13.16 on November 12, 2013, following the company's announcement that the Food and Drug Administration informed Sarepta that it considered its New Drug Application ("NDA") filing for eteplirsen to be premature.According to the complaint, Sarepta misled investors by making materially false and misleading statements regarding the significance of its eteplirsen Phase IIb study data set and the likelihood of the FDA accepting the company's NDA for eteplirsen for review based on that data set. As a result, Sarepta's common stock traded at artificially high prices throughout the class period.