NEW YORK, Dec. 3, 2013 (GLOBE NEWSWIRE) -- Labaton Sucharow LLP filed a class action lawsuit on December 3, 2013 in the U.S. District Court for the District of Massachusetts. The lawsuit was filed on behalf of persons who purchased, otherwise acquired, or contracted to acquire securities of Ariad Pharmaceuticals, Inc. ("Ariad" or the "Company") (Nasdaq:ARIA) between December 12, 2011 and October 8, 2013, inclusive (the "Class Period").
If you purchased, acquired, or contracted to acquire Ariad securities during the Class Period, you may be able to seek appointment as Lead Plaintiff. Lead Plaintiff motion papers must be filed with the U.S. District Court for the District of Massachusetts no later than December 9, 2013. A lead plaintiff is a court-appointed representative for absent members of the Class, as defined below. You do not need to seek appointment as lead plaintiff to share in any Class recovery in this action. If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member. You may retain counsel of your choice to represent you in this action.
If you would like to consider serving as lead plaintiff or have any questions about this lawsuit, you may contact David C. Erroll, Esq. of Labaton Sucharow LLP, at (800) 321-0476 or (212) 907-0739, or via email at derroll@labaton.com. If you are a member of the Class, you can view a copy of the complaint and join this class action online at http://www.labaton.com/en/cases/Newly-Filed-Cases.cfm.
The complaint charges Ariad and certain of its officers with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and U.S. Securities and Exchange Commission Rule 10b-5 promulgated thereunder. The complaint alleges that Defendants made false and misleading statements and concealed material information relating to the Company's most advanced drug, ponatinib, trade-named Iclusig. Specifically, Defendants assured investors that Iclusig's side effects were easily managed and that data from clinical drug trials did not indicate increased risk of serious cardiovascular side effects, thereby artificially inflating the price of Ariad securities.
Ariad, which is based in Cambridge, Massachusetts, is a biotechnology company that focuses on the development of oncology treatments, including Iclusig, which is intended to treat certain types of leukemia. The complaint alleges that, during the Class Period, Defendants concealed the following facts from the investing public: (1) serious cardiovascular side effects such as arterial thrombotic events and strokes, some fatal, had occurred in patients treated with Iclusig at increasingly significant rates before and during the Class Period; (2) the Company's statements regarding the use, value, and prospects for the commercialization of Iclusig lacked a reasonable basis; and (3) as a result, Defendants' statements regarding the safety and outlook for Iclusig and regarding the prospects of the Company were materially false and misleading at all relevant times.
On October 9, 2013, Ariad issued a press release disclosing that, based on analysis of ongoing trial data that showed evidence of serious cardiovascular risks associated with Iclusig, the Company had halted enrollment in all clinical trials for Iclusig and would modify the dosing of patients currently enrolled in those trials. In reaction to this disclosure, Ariad's stock price declined by $11.31 per share, or 65.99 percent, to close at $5.83 per share on heavy trading volume.
The plaintiff seeks to recover damages on behalf of persons who purchased, otherwise acquired, or contracted to acquire securities of Ariad during the Class Period (the "Class"). The plaintiff is represented by Labaton Sucharow LLP, which has extensive experience in prosecuting securities class actions.
Labaton Sucharow LLP, with offices in New York, New York and Wilmington, Delaware, is one of the country's premier law firms representing institutional investors in class action and complex securities litigation, as well as consumers and businesses in class actions seeking to recover damages for anticompetitive practices. The Firm has been a champion of investor and consumer rights for more than 50 years, seeking recovery of investor losses and necessary governance reforms to protect investors and consumers. Labaton Sucharow has been recognized for its excellence by the courts and its peers. More information about Labaton Sucharow is available at www.labaton.com.