According to the Complaint, on February 13, 2012, defendants disclosed that the FDA had provided Chelsea with a briefing document that the FDA staff prepared for a February 23, 2012 Advisory Committee meeting, which raised concerns about the drug’s risks and limited benefit. On that same day, the price of Chelsea common stock declined $1.88 per share, or more than 37%, to close at $3.11 per share.On February 21, 2012, the FDA publicly released the briefing document that had been provided to the Company. The FDA staff recommended to the FDA Advisory Committee that Droxidopa not be approved for use with people suffering from NOH inasmuch as the drug had not demonstrated durable effectiveness and showed worrisome safety issues in test results and post-marketing cases in Japan. As a result, the price of the Company’s common stock declined $0.71 per share, or 21%, to close at $2.64 per share. According to the Complaint, after the close of the market on March 28, 2012, Chelsea disclosed that it had received a complete response letter from the FDA rejecting the Company’s New Drug Application. In addition, the FDA requested that the Company submit data from an additional positive study to support efficacy shown in Study 301, recommending that such a study be designed to demonstrate durability of effect over a 2 to 3 month period. On this news, the price of Chelsea common stock declined $1.051 per share, or more than 28%, to close at $2.62 per share on March 29, 2012. If you wish to serve as lead plaintiff, you must move the Court no later than June 4, 2012. A lead plaintiff is a representative party acting 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. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.Attorney advertising. Prior results do not guarantee a similar outcome.