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NEW YORK, Sept. 17, 2019 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Karyopharm Therapeutics Inc. (“Karyopharm” or the “Company”) (NASDAQ: KPTI) and certain of its officers. The class action, filed in United States District Court, for the District of Massachusetts, and indexed under 19-cv-11972, is on behalf of a class consisting of all persons and entities other than Defendants that: (i) purchased shares of Karyopharm’s securities between March 2, 2017, and February 22, 2019, inclusive (the “Class Period”); (ii) purchased Karyopharm shares in or traceable to the Company’s public offering of common stock conducted on or around April 28, 2017 (the “2017 Offering”); or (iii) purchased Karyopharm shares in or traceable to the Company’s public offering of common stock conducted on or around May 7, 2018 (the “2018 Offering,” and together with the 2017 Offering, the “Offerings”).
The claims asserted alleged against Karyopharm and certain of the Company’s Officers, and Karyopharm’s Board of Directors, including the directors that signed the Registration Statements for the Offerings (collectively, “Defendants”), and arise under Sections 11 and 15 of the Securities Act of 1933 (the “Securities Act”), and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5, promulgated thereunder.
If you are a shareholder who purchased Karyopharm securities that: (i) purchased shares of Karyopharm’s securities between March 2, 2017 and February 22, 2019, inclusive (the “Class Period”); (ii) purchased Karyopharm shares in or traceable to the Company’s public offering of common stock conducted on or around April 28, 2017 (the “2017 Offering”); or (iii) purchased Karyopharm shares in or traceable to the Company’s public offering of common stock conducted on or around May 7, 2018 (the “2018 Offering,” and together with the 2017 Offering, the “Offerings”), you have until September 23, 2019, 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 firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
Karyopharm is a clinical-stage pharmaceutical company focused on the development of drugs for the treatment of cancer. During the Class Period, the Company’s lead drug candidate was selinexor, which is intended for the treatment of various types of cancer, including principally blood cancers. This matter arises from Defendants’ material misrepresentations and omissions regarding results from clinical trials for selinexor’s treatment of patients with certain types of blood cancer: the Phase 2 SOPRA trial (“SOPRA”), which evaluated selinexor for treatment of patients with acute myeloid leukemia (“AML”); and Part 2 of the Phase 2b STORM trial (“STORM”), which evaluated the safety and efficacy of selinexor in treating patients with multiple myeloma (“MM”).
The complaint alleges that throughout the Class Period, the Company continued to tout the commercial prospects for selinexor and consistently described selinexor as having a “predictable and manageable tolerability profile” and a “very nice safety profile,” and assured investors that it was “well tolerated” by patients. Karyopharm also claimed that selinexor had the potential to be used as a new treatment for MM, with limited and manageable side effects. As a result of these misrepresentations, Karyopharm shares traded at artificially inflated prices during the Class Period.
The truth was revealed on February 22, 2019, when, in advance of an FDA advisory committee meeting to review Karyopharm’s New Drug Application (“NDA”) for selinexor and assess the drug’s risks and benefits, the FDA released a briefing document expressing serious concerns about the safety and efficacy of selinexor (the “FDA Report”). Significantly, the FDA Report revealed that, contrary to Karyopharm’s assurances, the previously canceled SOPRA trial had resulted in “worse overall survival” for AML patients treated with selinexor, which “highlight[ed] the toxicity of this drug.” The FDA also determined that the toxicity observed with selinexor in AML patients in the SOPRA study was “similar” to that observed in MM patients in the STORM study. The FDA unambiguously concluded that “[t]reatment with selinexor is associated with significant toxicity” and has “limited efficacy.”
These disclosures caused the Company’s stock price to decline from $8.97 per share to $5.07 per share, or more than 43%, on February 22, 2019.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, 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 80 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
Robert S. Willoughby