October 15, 2020 - An investor in shares of Reata Pharmaceuticals, Inc. (NASDAQ: RETA) filed a lawsuit in the U.S. District Court for the Eastern District of Texas over alleged violations of Federal Securities Laws by Reata Pharmaceuticals, Inc. in connection with certain allegedly false and misleading statements made between October 15, 2019 and August 7, 2020.

Plano, TX based Reata Pharmaceuticals, Inc., a clinical stage biopharmaceutical company, develops novel therapeutics for patients with serious or life-threatening diseases by targeting molecular pathways that regulate cellular metabolism and inflammation. Reata Pharmaceuticals, Inc. reported that its annual Total Revenue declined from $53.58 million in 2018 to $26.51 million in 2019, and that its Net Loss increased from $80.54 million in 2018 to $290.17 million in 2019.

On August 10, 2020, during pre-market hours, Reata Pharmaceuticals, Inc. announced its second quarter 2020 financial results, wherein it disclosed that the FDA is not convinced that the MOXIe Part 2 results of the Company's study assessing omaveloxolone for the treatment of FA will support a single study approval without additional evidence that lends persuasiveness to the results, and that, [i]n preliminary comments for [a] meeting, the FDA stated that [Defendants] will need to conduct a second pivotal trial that confirms the mFARS [modified Friedreich's Ataxia Rating Scale] results of the MOXIe Part 2 study with a similar magnitude of effect. Shares of Reata Pharmaceuticals, Inc. (NASDAQ: RETA) declined from $257.96 per share in February 2020 to as low as $88.17 per share on September 28, 2020.

According to the complaint the plaintiff alleges on behalf of purchasers of Reata Pharmaceuticals, Inc. (NASDAQ: RETA) common shares between October 15, 2019 and August 7, 2020, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between October 15, 2019 and August 7, 2020, the Defendants made false and/or misleading statements and/or failed to disclose that the MOXIe Part 2 study results were insufficient to support a single study marketing approval of omaveloxolone for the treatment of FA in the U.S. without additional evidence, that as a result, it was foreseeable that the FDA would not accept marketing approval of omaveloxolone for the treatment of FA in the U.S. based on the MOXIe Part 2 study results, and that as a result, the Company's public statements were materially false and misleading at all relevant times.