Labaton Sucharow has been appointed co-lead counsel in a securities class action filed on behalf of Granite Point Capital against Prothena Corporation, a clinical-stage neuroscience company. Partner Carol Villegas will lead the Firm’s litigation team.
In a complaint filed on July 16, 2018, the Firm claimed that Prothena misleadingly cited the results of Prothena’s ongoing Phase 1/2 clinical study of the company’s principal asset, NEOD001, a monoclonal antibody designed to treat amyloid light chain amyloidosis, a debilitating disease that can lead to organ failure and death. Prothena stated that the Phase 1/2 study was evidence that the drug was effective and provided a strong basis for late-stage studies, which turned out to be false. When the truth regarding NEOD001’s prospects was revealed, the price of Prothena’s stock declined by over 69 percent.
The case is In re Prothena Corporation PLC Securities Litigation, No. 18-cv-06425 (S.D.N.Y.). Labaton Sucharow represents co-lead plaintiff Granite Point Capital.