Shareholder rights law firm Robbins LLP announces that a purchaser of securities of Odonate Therapeutics, Inc. (NASDAQ: ODT) has filed a class action complaint against the Company for alleged violations of the Securities Exchange Act of 1934 between December 7, 2017 and August 21, 2020. Based in San Diego, California, Odonate is a pharmaceutical company that develops therapeutics for the treatment of cancer. The Company is developing tesetaxel, an oral chemotherapy.
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Odonate Therapeutics, Inc. (ODT) Accused of Misrepresenting Potential of New Cancer Drug
According to the complaint, during the relevant period, Odonate Therapeutics, Inc. touted the extent of its clinical trials of tesetaxel and the efficacy of the drug. Unbeknownst to shareholders, Odonate Therapeutics failed to disclose the serious safety and tolerance issues surrounding tesetaxel, which has compromised the drug's potential commercial viability as a cancer treatment. Before market hours on August 24, 2020, Odonate released its CONTESSA trial results, shocking investors with the announcement that tesetaxel substantially increased neutropenia (low white blood cell counts), neuropathy, and other adverse events. The trial results demonstrated a discontinuation rate of just 11.9% in the control group versus 23.1% in the tesetaxel treatment group. On this news, Odonate stock price fell 43.35% to close at $18.33 per share on August 24, 2020.
If you purchased Odonate Therapeutics, Inc. (ODT) securities between December 7, 2017 and August 21, 2020, you have until November 16, 2020, to ask the court to appoint you lead plaintiff for the class.
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