NEW YORK, July 27, 2015 (GLOBE NEWSWIRE) -- Pomerantz LLP has filed a class action lawsuit against Avalanche Biotechnologies, Inc. (“Avalanche” or the “Company”) (NASDAQ:AAVL) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 15-cv-03231, is on behalf of all persons and entities, other than Defendants, who purchased Avalanche securities: (1) pursuant and/or traceable to the Company’s Registration Statement and Prospectus (defined below) issued in connection with the Company’s initial public offering on or about July 31, 2014 (the “IPO” or the “Offering”); and/or (2) on the open market between July 31, 2014 and June 15, 2015, both dates inclusive (the “Class Period”). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who purchased Avalanche securities during the Class Period, you have until September 8, 2015 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Avalanche is a biotechnology company that uses its proprietary Ocular BioFactory™ platform for discovering and developing novel medicines with the potential to offer therapeutic benefit. Avalanche’s focus is to develop treatment to combat Age-Related Macular Degeneration (“AMD”) which is a progressive disease affecting the retinal cells in the macula, the region of the eye responsible for central vision.
The Complaint alleges that throughout the Class Period, the Defendants made materially false and/or misleading statements and failed to disclose that Phase 2a of the AVA-101 study was not designed to show any statistical significance between the active and control groups in the secondary endpoints.
On May 14, 2015, Avalanche issued the press release entitled, “Avalanche Biotechnologies Presents Three Posters at American Society of Gene & Cell Therapy (ASGCT) Annual Meeting.” The press release discussed Phase 2a of the AVA-101 study.
After the market closed on June 15, 2015, the Company issued a press release entitled, “Avalanche Biotechnologies, Inc. Announces Positive Top-Line Phase 2a Results for AVA-101 in Wet Age-Related Macular Degeneration.” Avalanche said that the company's treatment for wet age-related macular degeneration met its primary endpoint, however, in a conference call to discuss Phase 2 clinical trial results, the company indicated that the study wasn’t designed to show statistically significant differences between active and control groups.
On this news, the Company’s stock fell $21.83 per share, or over 56%, the next day to close at $17.05 per share on June 16, 2015.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.