According to the law firm press release, Ventrus is a development stage pharmaceutical company which is focused on late-stage prescription drugs for the treatment of gastrointestinal disorders, specifically hemorrhoids, anal fissures, and fecal incontinence. Ventrus' lead products are topical treatments for hemorrhoids, which target a specific serotonin receptor.
The securities class action charges that, throughout the Class Period, the Company made false and/or misleading statements, as well as failed to disclose material adverse facts concerning the Company's lead product iferanserin (VEN 309) ("VEN 309"). The Company described VEN 309 as a new chemical entity for the topical treatment of symptomatic internal hemorrhoids. The Company stated that in seven clinical studies between 1993 and 2003, VEN 309 demonstrated good tolerability and no severe adverse events while showing statistically significant improvements in bleeding, itchiness, and pain.
Specifically, during the Class Period the Company touted that it was in frequent and ongoing communications with the FDA, that clinical end points for the VEN 309 trial had been agreed to by the FDA, and that the prior results from Phase II trials of VEN 309 demonstrated the product's clinical efficacy. The Company represented its prior Phase IIb studies in Germany as evidence of VEN 309's efficacy and as support for their claims that FDA approval would be achieved. These false and misleading statements artificially inflated, maintained, and increased the price of Ventrus' common stock, reaching a high of $20.25 during the Class Period.
On June 25, 2012, Ventrus shocked the market when it issued a press release announcing that VEN 309 failed its Phase III trial before the FDA, and that the Company would suddenly abandon further development of VEN 309, including any further attempt to obtain FDA approval. In response to this news, the price of Ventrus common stock plummeted over 50% -- to $5.02 per share on June 25, 2012.
On June 19, 2013, an Amended Class Action Complaint was filed by the plaintiffs against the defendants.
On July 23,2013, the motion was granted appointing Lead Plaintiff for the Class and Kahn, Swick, & Foti, LLC was appointed Lead Counsel.
On September 16, 2013, a Consolidated Class Action Amended Complaint was filed by the Lead plaintiffs against the defendants.
On May 5, 2014, the Court issued a Decision and Order Granting the Defendants’ Motion to Dismiss.
On May 5, 2014, the Clerk’s Judgment on the Defendants' Motion to Dismiss was granted and the Plaintiffs' complaint was dismissed with prejudice. The Clerk of Court was directed to close the case.