WASHINGTON, DC (May 10, 2017) — U.S. Market Advisors Law Group PLLC announces that a class action lawsuit has been filed against OvaScience, Inc. (“OvaScience” or the “Company”) (NASDAQ: OVAS) and certain of its officers. The case has been filed in United States District Court, District of Massachusetts, and docketed under 17-cv-10511. The class action is on behalf of investors who purchased or otherwise acquired OvaScience common stock, seeking to recover compensable damages caused by defendants’ violations of the Securities Exchange Act of 1934.
If you are a shareholder who purchased OvaScience securities between January 15, 2015 and March 26, 2015, you have until May 26, 2017 to ask the Court to appoint you as Lead Plaintiff for the class. To discuss this action, contact David P. Abel at email@example.com.
OvaScience is a fertility company that claims to have discovered a therapy, known as AUGMENT, that increases the chances of in vitro fertilization (“IVF”) by extracting mitochondria from egg precursor cells (immature egg cells found in the protective outer layer of a woman’s ovaries) and injecting them into the mature egg being utilized in the IVF process. The AUGMENT treatment is the Company’s sole marketable product.
The complaint alleges that during the Class Period, defendants issued false and misleading statements and/or fail to disclose adverse information regarding the Company’s business, operations and prospects. Specifically, contrary to defendants’ Class Period statements that the AUGMENT treatment improved pregnancy rates in women with prior failed IVF cycles, and that clinics offering the AUGMENT treatment had achieved pregnancy rates of as high as 53%, in fact, the science behind AUGMENT had not been scientifically validated and the Company was unable to achieve the purported success rates it claimed. As a result of defendants’ false statements and/or omissions, OvaScience stock traded at artificially inflated prices during the Class Period, reaching a high of close to $55 per share.
The truth concerning AUGMENT’s success rate began to be revealed in Company press releases issued on March 26 and 28, 2015. On March 26, 2015, OvaScience issued a release regarding initial patient experiences of women with prior failed IVF cycles, stating that in “26 women who received the AUGMENT treatment, there were 9 clinical pregnancies out of 17 embryo transfers (53%).” The release went on to state that “pregnancy rates across IVF clinics that offer the AUGMENT treatment currently range from 25% – 53%.” On March 28, 2015, the Company announced results from another clinic that utilized the AUGMENT treatment, reporting that “there were two clinical pregnancies out of eight embryo transfers (25%).” Then on March 30, 2015, an analyst at H.C. Wainwright questioned the Company’s pregnancy rates, stating that “the data raised interesting questions regarding” the Company’s calculation methods, explaining that an “alternative representation of the data would have included all IVF cycles,” yielding a 35% success rate instead of a 53% success rate. On this news, the price of OvaScience stock fell $17.14 per share, or 35%, to close at $31.15 per share on April 1, 2015.
Subsequently, the price of OvaScience stock declined further when analysts and the media continued to question the Company’s success rate, and by September 29, 2015 the stock had fallen to $8.57 per share after the Company disclosed that it did not expect to meet its previously announced goal of 1,000 AUGMENT treatment cycles in 2015.
U.S. Market Advisors Law Group PLLC is a national law firm based in Washington, D.C. The firm represents investors worldwide in U.S. securities class action lawsuits.
David P. Abel