Juno Therapeutics Faces Securities Class Action
WASHINGTON, D.C. — U.S. Market Advisors Law Group PLLC announces that a class action lawsuit has been filed against Juno Therapeutics, Inc. (“Juno” or the “Company”) (NASDAQ: JUNO) and certain of its officers. The class action, filed in United States District Court, Western District of Washington, is on behalf of a class consisting of all persons securities between June 4, 2016 and July 7, 2016, inclusive (the “Class Period”).
Juno is a biopharmaceutical company that is developing cell-based cancer immunotherapies. Its leading product candidate is called JCAR015, which is currently in clinical trials.
The Allegations Against Juno
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: Defendants made misleading partial disclosures about JCAR015’s safety and made public misrepresentations or failed to disclose material facts of the death of patients in its Phase 2 clinical trial.
In May 2016, a patient in the Phase 2 trial of JCAR015—dubbed the “ROCKET” trial by Juno—died of a cerebral edema, a form of neurotoxicity. In late June or early July, two more patients in the ROCKET trial died of cerebral edemas. This caused the FDA to issue a clinical hold and forced Defendants to reveal the truth, which they finally did on July 7, 2016, after the market closed.
The Company knows—and has previously admitted—that one of the notable side effects of JCAR015 is “severe neurotoxicity.” In May 2016, a patient in the Phase 2 trial of JCAR015—the so-called “ROCKET” trial—died of a cerebral edema (which is, of course, a form of neurotoxicity).
Juno knew the patient death was important: it consulted with its Data Safety Monitoring Board (“DSMB”) and the Food and Drug Administration (“FDA”) about an appropriate response. Yet it failed to tell investors.
falling by more than 30% the day after the corrective disclosure.