NEW YORK, July 17, 2018 -- Labaton Sucharow LLP (“Labaton Sucharow”) announces that on July 16, 2018, it filed a securities class action lawsuit on behalf of its client Granite Point Capital (“Granite Point”) against Prothena Corporation plc (“Prothena” or the “Company”) (NASDAQ: PRTA), and certain of its senior executives (collectively, “Defendants”). The action, which is captioned Granite Point Capital v. Prothena Corp. PLC, No. 18-cv-06425 (S.D.N.Y.), asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”), and U.S. Securities and Exchange Commission (“SEC”) Rule 10b-5 promulgated thereunder, on behalf of all persons or entities that purchased Prothena’s publicly traded common stock between October 15, 2015 and April 20, 2018, inclusive (the “Class Period”).
Prothena is a development-stage biotechnology company. During the Class Period, Prothena’s principal asset was NEOD001, a monoclonal antibody designed to treat amyloid light chain amyloidosis (“AL amyloidosis”), a debilitating disease that can lead to organ failure and death.
The Complaint alleges that defendants misleadingly cited the results of Prothena’s ongoing Phase 1/2 clinical study of NEOD001 as evidence that the drug was effective and provided a strong basis for late-stage Phase 2b and Phase 3 studies of NEOD001. In truth, NEOD001 was not an effective treatment for AL amyloidosis and did not provide an adequate basis for the late-stage Phase 2b and Phase 3 studies. When the truth regarding NEOD001’s prospects was finally revealed, the price of the Company’s stock declined by over 69 percent.
If you purchased or acquired Prothena common stock during the Class Period, you are a member of the “Class” and may be able to seek appointment as Lead Plaintiff. Lead Plaintiff motion papers must be filed with the U.S. District Court for the Southern District of New York no later than September 17, 2018. The Lead Plaintiff is a court-appointed representative for absent members of the Class. You do not need to seek appointment as Lead Plaintiff to share in any Class recovery in this action. If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member. You may retain counsel of your choice to represent you in this action.
If you would like to consider serving as Lead Plaintiff or have any questions about this lawsuit, you may contact Francis P. McConville, Esq. of Labaton Sucharow, at (800) 321-0476, or via email at firstname.lastname@example.org. You can view a copy of the complaint here.