#USA #New York #Class Action #ChemoCentryx #avacopan

New Class Action Filed Against ChemoCentryx

In a significant legal development, Bernstein Litowitz Berger & Grossmann LLP has announced the filing of a class action lawsuit against ChemoCentryx, Inc. for its alleged role in misleading investors through false statements regarding the safety and effectiveness of its drug avacopan (marketed as TAVNEOS®). The notice details that all individuals or entities that purchased ChemoCentryx common stock between November 26, 2019, and May 6, 2021, may have been adversely affected by these actions.

The Nature of the Allegations

According to the lead plaintiff, the Indiana Public Retirement System, ChemoCentryx and its CEO, Thomas J. Schall, communicated misleading information about avacopan's efficacy, particularly during its FDA approval process. This misinformation allegedly led to an inflated stock price, benefitting the company while damaging investors when the truth emerged, resulting in a decreased stock value. The lead plaintiff's claims underscore a serious breach of trust and possibly federal securities law, particularly concerning insider trading, as it is alleged that Schall sold stock while in possession of non-public information.

The Court's Certification

On November 26, 2024, the United States District Court for the Northern District of California certified the lawsuit as a class action, allowing it to proceed on behalf of the affected stockholders. This development offers those impacted a collective platform to seek justice against the defendants. The court action provides a crucial legal remedy for those who relied on the integrity of the company's public statements while making investment decisions.

Implications for Affected Investors

Those classified as Class Members need to be made aware of their rights concerning this legal action. As participants in the class, their future legal actions against ChemoCentryx will be influenced significantly by the outcome of this proceeding. It's important to note that if individuals do not wish to be included in this class, they must formally request exclusion by January 14, 2025. However, excluding oneself means forfeiting any potential recovery that might arise from future settlements or judgments.

No Final Judgment Yet

At present, it is crucial to note that there has been no final judgment or settlement; a trial date has been set for September 2025. As proceedings develop, more information will become available regarding the extent of damages, potential settlement frameworks, and the overall direction taken by the court.

Resources for Class Members

A complete notice of the pendency of this class action is being mailed to identified potential Class Members. Additionally, those who have not yet received this notice can access it online or contact the notice administrator for further details.

Investors are advised to retain all documentation regarding their transactions involving ChemoCentryx stock, as it will support their position should they remain part of the class. The outcome of this lawsuit may set a vital precedent for investor rights and corporate accountability in the biotech industry.

Conclusion

This ongoing class action against ChemoCentryx highlights essential issues surrounding transparency and corporate governance in the pharmaceutical industry. As these proceedings unfold, they will be closely watched by both investors and legal stakeholders concerned with safeguarding the integrity of market practices. Those affected are encouraged to stay informed and actively engage with resources made available to them through the litigation process.