Faruqi & Faruqi, LLP Files Class Action Lawsuit Against ARIAD Pharmaceuticals, Inc. (ARIA)

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Dec 06, 2013, 08:00 ET

NEW YORK, Dec. 6, 2013 /PRNewswire/ -- Notice is hereby given that Faruqi & Faruqi, LLP has filed a class action lawsuit in the United States District Court for the District of Massachusetts, Case No. 1:13-cv-13109, on behalf of investors who purchased or otherwise acquired ARIAD Pharmaceuticals, Inc. ("ARIAD" or the "Company") (NASDAQ: ARIA) securities and/or transacted in ARIAD options contracts between December 12, 2011 and October 17, 2013, inclusive (the "Class Period") and suffered damages as a result.

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If you wish to obtain information concerning this action or view a copy of the complaint, you can do so by clicking here: http://www.faruqilaw.com/ARIA. There is no cost or obligation to you.

ARIAD and its executives are charged with violations of Section 10(b) and/or 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that Defendants knew or recklessly failed to inform investors that: (1) the clinical data from the pivotal Phase 2 PACE trial of the Company's leukemia drug Iclusig demonstrated significant cardiovascular side effects in patients treated with the drug, such as arterial thrombotic events and strokes, before and during the Class Period; and (2) as a result, Defendants' statements regarding the safety, outlook, and commercial prospects for Iclusig were materially false and misleading at all relevant times.

On October 9, 2013, the Company updated the data from its PACE trial, disclosing that Iclusig had shown to cause a higher rate of blood clots and heart-related side effects than previously reported. As a result of this startling data, the FDA placed a hold on new patient enrollment for the Phase 3 trial of Iclusig. On this news, the price of ARIAD's stock plummeted by $11.31 per share or more than 66%, to close at $5.83 on October 9, 2013.

Then, on October 18, 2013, ARIAD announced that it mutually agreed with the FDA to completely terminate the Company's Phase 3 trial of Iclusig based on evaluation of the recently released safety data. On this news, the price of ARIAD's declined by an additional $1.83 per share or more than 40%, to close at $2.67 on October 18, 2013.

Plaintiff now seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired ARIAD securities and/or transacted in ARIAD options between December 12, 2011 and October 17, 2013, excluding defendants and their affiliates, and who suffered damages thereby. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions and actions involving corporate fraud.

If you transacted in ARIAD securities as set forth above, you may, not later than December 9, 2013, move the court to serve as lead plaintiff of the class, if you so choose. In order to discuss this action, or if you have any questions concerning this notice or your rights or interests, please contact:

Faruqi & Faruqi, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
ATTN: Richard Gonnello, Esq. or Francis P. McConville, Esq.
[email protected] or [email protected]
Toll Free: (877) 247-4292
Phone: (212) 983-9330

Faruqi & Faruqi, LLP is a national law firm which represents investors and individuals in class action litigation. The firm is focused on providing exemplary legal services in complex litigation in the areas of securities, shareholder, antitrust and consumer litigation, throughout all phases of litigation. The firm has an experienced trial team which has achieved significant victories on behalf of the firm's clients. To keep track of the latest securities litigation news, follow us on Twitter at www.twitter.com/MergerActivity or on Facebook at www.facebook.com/FaruqiLaw.

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