Wahid Tadros v. Celladon Corp.
Status: Ongoing Case
On December 9, 2015, Labaton Sucharow was appointed as co-lead counsel in a securities class action against Celladon Corp. (Celladon), a biotechnology company.
The complaint alleges that Celladon repeatedly touted positive results from CUPID 1, its first human trial of its new gene therapy, Mydicar. The company claimed that the results demonstrated that Mydicar was effective at treating late stage heart failure. Based on the CUPID 1 results, Celladon stated that it would proceed with clinical trials in a larger human test population, referred to as CUPID 2. These statements conveyed the inescapable impression that CUPID 2, which was already underway, would yield equally positive results.
Lead plaintiff alleges that, unbeknownst to investors, the CUPID 1 trial had serious and fundamental flaws, both in design and execution, which rendered it useless in evaluating Mydicar’s efficacy. Accordingly, Celladon’s exceedingly positive statements regarding CUPID 1 lacked a reasonable basis, and the purportedly positive results formed no basis for the company to proceed to the CUPID 2 trial.
In April 2015, Celladon announced that the CUPID 2 trial failed on all counts and did not demonstrate any efficacy when compared to the placebo, but left open the possibility that Mydicar could still be commercially viable. The company announced in June 2015 that it was suspending further research and development into Mydicar and was seeking a merger or sale with another biotechnology company. These disclosures caused significant declines in the value of the company’s stock.
On October 7, 2016, the court granted the defendants’ motion to dismiss the amended complaint, and provided the plaintiff with up to 60 days to amend. As a result, the court closed the case on December 15, 2016. The plaintiff subsequently filed a Notice of Appeal on December 28, 2016. This appeal is currently pending, and the briefing schedule for the appeal has been set.
The opening brief and all supporting materials are to be filed on Friday, April 7, 2017, while the answering brief and all supporting materials are to be filed on Monday, May 8, 2017. The plaintiff will submit a reply brief no later than Monday, May 22, 2017. The parties will be notified of the proposed appeal hearing dates and locations approximately 14 weeks before the case is set for oral hearing.
The case is Wahid Tadros v. Celladon Corp., No. 15-cv-01458-AJB (DHB) (S.D. Cal). Labaton Sucharow represents lead plaintiff Wahid Tadros. The defendants are Celladon Corp., Celladon’s Chief Executive Officer Krisztena M. Zsebo, and Rebecque J. Laba, Celladon’s Vice President of Finance and Administration.