AEterna Zentaris Inc. (USA) (NASDAQ:AEZS) Investor Files Class Action Lawsuit Over Alleged Securities Laws Violations
June 15, 2012 (Shareholders Foundation) -- An investor in NASDAQ:AEZS shares filed a lawsuit in the U.S. District Court for the Southern District of New York against AEterna Zentaris Inc. over alleged Violations of Federal Securities Laws in connection with certain financial statements.
According to the complaint the plaintiff alleges on behalf of all persons who purchased AEterna Zentaris Inc. (USA) (NASDAQ:AEZS) securities between February 3, 2010 and April 1, 2012, that AEterna Zentaris Inc. and its Chief Executive Officer and AEterna's Chief Financial Officer violated the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. AEterna Zentaris Inc. (USA) reported that its Total Revenue fell from $63.24million in 2009 to $27.70million in 2010 and then increased to $36.05million in 2011. However, its Net Loss increased from $16.79million in 2009 to $28.45million in 2010, respectively $27.07million in 2011.
Shares of AEterna Zentaris Inc. (USA) (NASDAQ:AEZS) rose from as low as $0.48 per share in January 2009 to $2.83 per share in August 2009.
Specifically, the plaintiff alleges that defendants mislead investors about the timing and success of AEterna Zentaris' clinical trial that tested whether the drug perifosine was effective in treating late stage colorectal cancer.
Then on April 2, 2012, Aeterna Zentaris Inc. (NASDAQ: AEZS) (TSX: AEZ) announced that the Phase 3 "X-PECT" (Xeloda® + Perifosine Evaluation in Colorectal cancer Treatment) clinical trial evaluating perifosine + capecitabine (Xeloda®) in patients with refractory advanced colorectal cancer did not meet the primary endpoint of improving overall survival versus capecitabine + placebo.
Shares of AEterna Zentaris Inc. (USA) (NASDAQ:AEZS) fell from $2.14 on March 30, 2012 to $0.68 per share on April 3, 2012 and continued to decline to as low as $0.382 per share on June 13, 2012.
On June 15, 2012, NASDAQ:AEZS shares closed at $0.447 per share.