Roche Holding AG Securities Class Action
Company: Roche Holding AG (Other OTC: RHHBY)
Class Period: March 2, 2017 – June 5, 2017
Lead Plaintiff Deadline: August 7, 2017
Court: District of New Jersey
WASHINGTON, DC (June 8, 2017) — U.S. Market Advisors Law Group PLLC announces that a class action lawsuit has been filed on behalf of purchasers of Roche Holding AG (“Roche Holding” or the “Company”) securities between March 2, 2017 and June 5, 2017. The lawsuit seeks to recover damages for Roche investors under the federal securities laws.
Any member of the putative class may move the Court to serve as lead plaintiff through attorneys of their choice, or may choose to do nothing and remain an absent class member. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in Roche securities during the relevant period. Members of the class will be represented by the lead plaintiff and attorneys chosen by the lead plaintiff.
If you wish to choose attorneys to represent you and the class, you must apply to be appointed lead plaintiff no later than August 7, 2017. If you wish to join the litigation, complete the contact form below to be contacted by an attorney to discuss your rights or interests regarding this class action. There is no obligation or cost to you.
Background on Roche
Roche operates in the pharmaceuticals and diagnostics businesses worldwide. Specifically, Herceptin (trastuzumab) is indicated for the treatment of HER2-positive breast cancer and HER2-positive metastatic gastric cancer. And Perjeta is a personalized medicine approved by the U.S. Food and Drug Administration and European Commission in combination with Herceptin for the treatment of patients with previously untreated HER2-positive metastatic breast cancer.
About the Lawsuit
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) the combination of Perjeta and Herceptin is only marginally more effective than Herceptin alone in preventing breast cancer; and (2) as a result, Defendants’ statements about the Company’s business, operations and prospects were materially false and misleading and/or lacked a reasonable bases at all relevant times.
On March 2, 2017, Roche issued a release announcing that its Phase III APHINITY study showed Roche’s Perjeta® regimen helped people with an aggressive type of early breast cancer live longer without their disease returning compared to Herceptin® and chemotherapy. The release allegedly included very positive statements about the study but withheld detailed findings.
On June 5, 2017, Roche issued a release entitled, “APHINITY study shows Roche’s Perjeta-based regimen reduced the risk of invasive cancer returning compared to Herceptin and chemotherapy in HER2-positive early breast cancer,” stating in pertinent part:
Basel, 05 June 2017
APHINITY study shows Roche’s Perjeta-based regimen reduced the risk of invasive cancer returning compared to Herceptin and chemotherapy in HER2-positive early breast cancer
• Phase III study confirms benefit of the Perjeta-based regimen over the current standard of care
• The study was positive in the overall population, with greatest risk reduction in patients with node-positive or hormone receptor-negative disease
• Data will be submitted to global health authorities
Analysts and Medical professionals, however, were quick to dispute the Company’s findings. Later on June 5, 2017:
• Financial Times published an article entitled, “Roche suffers blow over breast cancer combination therapy,” stating that as a result of Roche’s trial results showing only a marginal benefit from using Roche’s new combination of Herceptin and Perjeta to combat breast cancer, oncologists might refrain from using the combination not only for cost reasons, but because Perjeta causes severe diarrhea in some patients.
• Bloomberg Quint published an article entitled, “Roche’s Pricey New Breast-Cancer Combo Barely Beats Old Drug,” that Roche’s results won’t justify moving a majority of patients to Roche’s pricey new combo treatment.
• Fox Business published an article entitled, “Study Questions Value of Costly Cancer-Drug Combinations,” citing the concerns of medical professionals regarding Roche’s trial results of its Herceptin/Perjeta drug combination.
On this news, shares of Roche fell $1.76 per share or approximately 5.12% from its previous closing price to close at $32.61 per share on June 5, 2017, damaging investors.