AspenBio Pharma Inc (NASDAQ: APPY) Investor Securities Class Action Lawsuit 10/01/2010

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Company Name(s): 
AspenBio Pharma
Case Name: 
AspenBio Pharma Shareholder Class Action Lawsuit 10/01/2010
Case Status: 
Case Dismissed
Affected Securities
NASDAQ: APPY
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
09/03/2010
Class Period Begin: 
02/22/2007
Class Period End: 
07/19/2010
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
11/30/2010
Case Dismissed: 
10/17/2014
Summary: 

October 17, 2014 - The U.S. Court of Appeals for the Tenth Circuit affirmed the decision of the district court, granting the defendants' motion to dismiss.

October 12, 2012 - The lead plaintiff filed a notice of appeal.

September 13, 2012 - The court granted the defendants' motion to dismiss without prejudice.

October 7, 2011 - The defendants filed a motion to dismiss.

August 24, 2011 - The court denied the defendants' motion to dismiss filed on December 1, 2010 without prejudice.

August 23, 2011 - The lead plaintiff filed an amended complaint.

July 11, 2011 - The lead plaintiff and lead counsel were appointed.

January 24, 2011 - Another investor filed a complaint and the cases were transferred to U.S District Court for the District of Colorado.

December 1, 2010 - The defendant filed a motion to dismiss and a motion to transfer case to the District of Colorado.

November 30, 2010 - Lead plaintiff motions were filed.

October 1, 2010 - An investor in shares of AspenBio Pharma Inc (NASDAQ: APPY) filed a lawsuit in the U.S. District Court for the Central District of California against AspenBio Pharma Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between February 22, 2007 and July 19, 2010.

AspenBio Pharma, Inc., located in Castle Rock, Colorado, is a bio-pharmaceutical company dedicated to the discovery, development, manufacture, and marketing of products, such as AppyScore. According to AspenBio Pharma AppyScore is a novel, rapid, blood-based diagnostic test to assist physicians in the difficult challenge of evaluating acute appendicitis. AppyScore could play an important role in reducing healthcare costs and patient exposure to harmful radiation from CT scanning, so AspenBio Pharma. According to the complaint the plaintiff alleges that AspenBio Pharma, Inc and certain of its officers and directors violated federal securities laws by issuing between February 22, 2007 and July 19, 2010, materially false and misleading statements about the effectiveness of AppyScore as a test to diagnose appendicitis. According to the Complaint, Defendants were aware or recklessly disregarded information that AppyScore was not effective in detecting appendicitis as it could not differentiate between appendicitis and other medical conditions. According to the complaint, this adverse information caused AspenBio Pharma’s stock (APPY) to drop, causing investors substantial losses.

During 2007 AspenBio Pharma, Inc. shares traded as high as $15 per share and during 2008 at almost $8.50 per share. In 2009 AspenBio Pharma, Inc. shares started to hold value and traded on January 16, 2009 at $7.63 per share, before declining to as little as $1.54 per share on January 23, 2009. Over the course of the next 18 months AspenBio Pharma shares were able to regain value to almost $4per share. But APPY shares fell from $3.38 per share on June 04 to $1.23 on June 09 after AspenBio Pharma announced on June 07, 2010 that it will perform additional data analysis on its recently completed pivotal clinical trial and as a result, the submission of its 510(k) application for AppyScore with the Food and Drug Administration will not occur as previously anticipated by late June 2010. Then on July 19, 2010 07/19/2010 -- AspenBio Pharma, Inc. (NASDAQ: APPY) reported the results from its recently completed AppyScore ELISA-based pivotal clinical trial. On July 20, 2010, AspenBio Pharma, Inc. (NASDAQ:APPY) fell to $0.689 per share. Recently AspenBio Pharma, Inc. shares (NASDAQ: APPY) traded at $0.493 per share.