According to the law firm press release, Aerie is a clinical-stage pharmaceutical company focused on the discovery, development and commercialization of therapies for the treatment of patients with glaucoma and other diseases of the eye. The Company’s lead product candidate is RhopressaTM (“Rhopressa”), a once-per-day eye drop that is designed to lower intraocular pressure (“IOP”) in patients with glaucoma or ocular hypertension. Rhopressa was in recent drug trials that were designed to show that Rhopressa was not inferior to an older, twice-per-day eye drop called timolol at reducing IOP after two weeks, six weeks, and 90 days of treatment.
The complaint alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding the Company’s prospects for Rhopressa, including that Rhopressa was not performing as well as timolol and would not lead to commercial success for Aerie. As a result of these false and misleading statements and/or omissions, Aerie securities traded at artificially inflated prices during the Class Period, with its stock price reaching a Class Period high of $35.39 per share.
Then on April 23, 2015, Aerie issued a press release announcing the results of its first Phase 3 registration trial for Rhopressa. According to the release, “[t]he trial did not meet its primary efficacy endpoint of demonstrating non-inferiority of IOP lowering for once-daily RhopressaTM compared to twice-daily timolol, the most widely used comparator in registration trials for glaucoma.” As a result of this news, the price of Aerie stock fell $22.52 per share to close at $12.87 per share on April 24, 2015, a one-day decline of nearly 64%.
On July 28, 2015, the Court issued an Order appointing lead plaintiff and approving lead counsel.
On June 20, 2016, the Court issued an Order granting Defendants' Motion to Dismiss and terminating this case. Lead Plaintiffs filed an amended complaint on September 28, 2016.