Updated: October 29, 2020
Status: Ongoing Case
This Action alleges that biopharmaceutical company Nektar Therapeutics (“Nektar” or the “Company”) and related persons made false and misleading statements regarding an potential cancer treatment in the Company’s development pipeline, NKTR-214.
Specifically, throughout the Class Period (January 10, 2017, to September 28, 2018) Defendants repeatedly represented to the investing public that NKTR-214 produces a “30-fold increase” in cancer-fighting cells with almost no increase in immunosuppressive cells. But those claims were misleading because the results of the clinical trials for NKTR-214 were skewed, as Defendants knowingly included outlier data derived from a single outlier patient who exhibited a uniquely significant increase in cancer-fighting cells. Further, Defendants falsely claimed that all patients in the trial were dosed with NKTR-214 every three weeks when, in fact, certain patients—including the outlier patient—were dosed every two weeks.
The truth concerning NKTR-214’s efficacy was partially revealed when, on June 2, 2018, Nektar publicly presented additional clinical trial results that contemporaneous media reports characterized as “disappointing” and “confusing” because the treatment’s effectiveness was shown to have dramatically dropped.
The truth was finally, fully revealed when, on October 1, 2018, Plainview LLC published a report titled “NKTR- 214: Pegging the Value at Zero.” The Plainview report revealed the falsity of Defendants’ claim, and further stated that Defendants’ decision to disclose skewed clinical trial results represented “an unprecedented level of data opacity.” In response to this news, Nektar’s stock price fell $5.63 per share, or 9.24 percent, over two trading sessions, closing at $55.33 per share on October 2, 2018.
The Action is captioned In re Nektar Therapeutics, No. 18-cv-6607 (N.D. Cal.). Labaton Sucharow serves as Lead Counsel representing Lead Plaintiffs Oklahoma Firefighters Pension and Retirement System and El Paso Firemen & Policemen’s Pension Fund and the class.
The Court dismissed the consolidated complaint, with leave to amend, on July 13, 2020. Lead Plaintiffs filed the operative amended consolidated complaint on August 10, 2020. Defendants filed a motion to dismiss the operative complaint on September 17, 2020, and the parties’ briefing on that motion was completed on October 29, 2020. The Court has not yet scheduled oral argument on Defendants’ motion.