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SAN DIEGO & AUSTIN, Texas -- (Business Wire)
Shareholder rights law firm Robbins Arroyo LLP announces
that a class action complaint was filed against XBiotech Inc. (NasdaqGS:
XBIT). The complaint is brought on behalf of all purchasers of XBiotech
securities pursuant to the company's initial public offering ("IPO") on
April 15, 2015, for alleged violations of the Securities Act of 1933 by
XBiotech's officers and directors. XBiotech, a clinical-stage
biopharmaceutical company, engages in discovering and developing True
Human monoclonal antibodies for treating various diseases. The company's
lead product candidate is known as Xilonix, which is intended to treat
advanced colorectal cancer.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/xbiotech-inc-july-2017
XBiotech Accused of Issuing Inaccurate Information About Its Drug
Trial
According to the complaint, soon after beginning the Phase III trial for
Xilonix in July 2014, XBiotech encountered significant problems with
enrolling patients. The company's registration statement and prospectus
issued in connection with the IPO failed to disclose that the company's
stated timeline for completion of the Phase III trial could not be met
without drastically increasing the number of clinical sites—which would
result in a concomitant increase in the company's costs—and that the
company had already experienced enrollment delays. On July 28, 2015,
XBiotech admitted that it would have to push back the timeline for the
Phase II trial towards the end of the year and that enrollment was less
than the company anticipated, causing the company's stock to decline
over 7.5%. Then, on November 23, 2015, XBiotech revealed numerous
"irregularities" in the data obtained in the Phase III trial, which
would result in the study having "reduced statistical power to
demonstrate the proposed effect." On this news, XBiotech's stock
declined $4.50 per share, or approximately 34%, to close at $8.75 per
share on November 24, 2015.
XBiotech Shareholders Have Legal Options
Concerned shareholders who would like more information about their
rights and potential remedies can contact attorney Leonid Kandinov at
(800) 350-6003, LKandinov@robbinsarroyo.com,
or via the shareholder
information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional investors
in shareholder derivative and securities class action lawsuits, and has
helped its clients realize more than $1 billion of value for themselves
and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170711006248/en/
Contacts:
Robbins Arroyo LLP
Leonid Kandinov
(619) 525-3990 or Toll Free
(800) 350-6003
LKandinov@robbinsarroyo.com
www.robbinsarroyo.com
Source: Robbins Arroyo LLP
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