Lawsuit Overview
March 1, 2016 - The lead plaintiff filed a notice of appeal.
February 2, 2016 - The court dismissed the case with prejudice.
January 4, 2016 - The court dismissed the amended complaint without prejudice.
March 6, 2015 - Defendants filed a motion to dismiss.
November 17, 2014 - The lead plaintiff filed an amended consolidated complaint.
September 22, 2014 - The lead plaintiff and lead counsel were appointed and all cases were consolidated.
August 25, 2014 - Lead plaintiff motions were filed.
June 23, 2014 - An investor in shares of Endocyte Inc (NASDAQ: ECYT) filed a lawsuit in the U.S. District Court for the Southern District of Indiana against Endocyte Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between March 21, 2014 and May 2, 2014.
According to the complaint the plaintiff alleges on behalf of purchasers of Endocyte Inc (NASDAQ: ECYT) common shares between March 21, 2014 and May 2, 2014, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that defendants issued misleading statements between March 21, 2014 and May 2, 2014 regarding the efficacy of Endocyte's experimental drug, VYNFINIT®, and misrepresented or failed to disclose material information concerning the Company's business and financial prospects.
Endocyte Inc reported that its annual Total Revenue rose from $0.19 million in 2011 to $64.87 million in 2013 and that its respective Net Loss declined from $40.53 million to $18.03 million.
On March 21, 2014, Endocyte Inc announced that the Committee for Medicinal Products for Human Use (“CHMP”) of the European Medicines Agency issued positive opinions for the Conditional Marketing Authorisations for the drug VYNFINIT®, used to treat platinum-resistant ovarian cancer ( PROC ) with VYNFINIT® using testing methods known as response evaluation criteria in solid tumors ( RECIST ).
Shares of Endocyte Inc (NASDAQ:ECYT) grew from $3.06 per share in late 2011 to as high as $28.17 per share in March 2014.
The plaintiff alleges that Endocyte Inc failed to disclose that the positive opinions were based on the testing criteria called RECIST 1.0 while the pending analysis for the Conditional Marketing Authorisations would be using the more stringent RECIST 1.1 testing criteria, and that in an attempt to take advantage of the Company's stock jump following the March 21 announcement, Endocyte Inc issued a public offering to quickly sell shares at the inflated price
Then on May 2, 2014, Endocyte Inc reported its first quarter financial results and privded a clinical update. In a separate announcement from the same day Merck and Endocyte Inc (NASDAQ: ECYT) announced that the Data Safety Monitoring Board (DSMB) of the PROCEED trial has completed a pre-specified, interim futility analysis and the DSMB recommended that the trial be stopped because vintafolide did not demonstrate efficacy on the pre-specified outcome of Progression-Free Survival (PFS) in patients with platinum-resistant ovarian cancer. Shares of Endocyte Inc (NASDAQ:ECYT) dropped from $17.99 per share on May 1, 2014, to a close of $6.62 per share on May 2, 2014.
On June 24, 2014, Endocyte Inc (NASDAQ: ECYT) shares closed at $6.65 per share.