Arena Pharmaceuticals Inc (NASDAQ: ARNA) Investor Securities Class Action Lawsuit 09/20/2010

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Company Name(s): 
Arena Pharmaceuticals
Case Name: 
Arena Pharmaceuticals Shareholder Class Action Lawsuit 09/20/2010
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
NASDAQ: ARNA
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
09/20/2010
Class Period Begin: 
03/17/2008
Class Period End: 
01/27/2011
Court of Filing: 
U.S. District Court for the Southern District of California
Deadline To File for Lead: 
11/19/2010
Date Settled: 
11/30/2017
Settlement Amount: 
$12,025,000
Deadline to Participate in Settlement: 
04/13/2018
Summary: 

April 12, 2018 - The court approved the settlement, the plan of allocation, the motion for attorneys’ fees and expenses, and dismissed the action with prejudice.

November 30, 2017 - The court preliminarily approved the settlement.

November 7, 2017 - Parties filed a stipulation of settlement.

April 28, 2017 - The court denied defendants' motion to dismiss.

February 2, 2017 - Defendants filed a motion to dismiss.

October 26, 2016 - The U.S. Court of Appeals for the Ninth Circuit reversed and remanded the district courts decision.

April 18, 2014 - The lead plaintiff filed a notice of appeal.

November 4, 2013 - The court granted the defendants' motion to dismiss without prejudice and granted lead plaintiff leave to file an amended complaint.

June 14, 2013 - The defendants filed a motion to dismiss.

May 13, 2013 - The lead plaintiff filed a second amended complaint.

March 28, 2013 - The court granted the defendants' motions to dismiss without prejudice and granted lead plaintiff leave to file an amended complaint.

December 30, 2011 - The defendants filed motions to dismiss.

November 1, 2011 - The lead plaintiff filed an amended consolidated complaint on behalf of investors who purchased Arena Pharmaceuticals Inc (NASDAQ: ARNA) common shares between March 17, 2008 through January 27, 2011. The lead plaintiffs alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between March 17, 2008 through January 27, 2011.

August 12, 2011 - A plaintiff filed a notice of voluntary dismissal.

August 8, 2011 - The lead plaintiff and lead counsel were appointed and all cases were consolidated.

November 19, 2010 - Lead plaintiff motions were filed.

September 22, 2010 - Another investor filed a complaint.

September 20, 2010 - An investor in shares of Arena Pharmaceuticals Inc (NASDAQ: ARNA) filed a lawsuit in the U.S.District Court for the Southern District of California against Arena Pharmaceuticals Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between December 8, 2008 and September 16, 2010.

Arena Pharmaceuticals Inc revenue decreased from $30.57 million in 2006 to $10.39 million in 2009. Its Net Income went over the same time period from a Net Loss of $86.25 million to a Net Loss of $153.20 million.

According to the complaint the plaintiff alleges alleges that Arena Pharmaceuticals Inc violated the Securities Exchange Act of 1934 and the Securities Act of 1933. The plaintiff claims that between December 8, 2008 and September 16, 2010, Arena Pharmaceuticals Inc represented to investors that the New Drug Application ("NDA") for its drug lorcaserin, or Lorqess, was based on extensive and robust data, and, that lorcaserin's combination of efficacy, safety and tolerability would position the drug candidate as first-line therapy for weight management.

On August 2006, Arena Pharmaceuticals Inc (NASDAQ: ARNA) and Eisai Inc. announced that the US Food and Drug Administration (FDA) has notified the company of the confirmed scheduling of an Endocrinologic and Metabolic Drugs Advisory Committee meeting on September 16, 2010, for the review of the lorcaserin New Drug Application (NDA). Arena Pharmaceuticals Inc said that Lorcaserin, which Arena discovered and has developed for weight management, is intended for obese patients as well as overweight patients who have at least one weight-related co-morbid condition.

Arena Pharmaceuticals Inc shares (NASDAQ: ARNA) traded in June 2010 at roughly $3 per share before increasing to $7.95 per share in July. ARNA shares traded in August above $7, before getting into a free fall in the midst of September.

The complaint further alleges that on September 14, 2010, investors began to learn the truth about lorcaserin when the FDA disclosed a Briefing Document titled NDA 22529 Lorqess (lorcaserin hydrochloride) Tablets, 10 mg Sponsor: Arena Pharmaceuticals Advisory Committee - September 16, 2010, which revealed, among other things, that lorcaserin caused cancer in rats in certain preclinical studies. Then on September 16, 2010, Arena Pharmaceuticals Inc and Eisai Inc. announced that the FDA Endocrinologic and Metabolic Drugs Advisory Committee voted 9 to 5 that the available data do not adequately demonstrate that the potential benefits of lorcaserin outweigh the potential risks, when used long-term in a population of overweight and obese individuals to allow marketing approval. After the announcement shares of Arena Pharmaceuticals Inc (NASDAQ: ARNA) decreased from $7.51 per share on September 2008 to recently $1.86 per share, or a decrease by almost 75%.

Arena Pharmaceuticals Inc, located in San Diego, California, is a clinical-stage biopharmaceutical company focused on discovering, developing and commercializing oral drugs that target G protein-coupled receptors, in four major therapeutic areas: cardiovascular, central nervous system, inflammatory and metabolic diseases.