NEW YORK, June 17, 2013 (GLOBE NEWSWIRE) -- On May 9, 2013, Scott+Scott, Attorneys at Law, LLP filed the first class action complaint against Ventrus Biosciences, Inc. ("Ventrus" or the "Company") on behalf of the putative class of investors who purchased or otherwise acquired Ventrus common stock (Nasdaq:VTUS) between December 17, 2010 and June 25, 2012, inclusive (the "Class Period"). The securities class action lawsuit, pending in the United States District Court for the Southern District of New York, seeks remedies under the Securities Exchange Act of 1934.
Investors who purchased shares of Ventrus common stock during the Class Period and wish to serve as a lead plaintiff in the class action must move the Court no later than July 8, 2013. Members of the investor class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member in the lawsuit against Ventrus. If you wish to view the class action complaint against Ventrus, discuss the investor lawsuit, or have questions concerning this notice or your rights, please contact Scott+Scott (email@example.com, (800) 404-7770, (860) 537-5537) or visit the Scott+Scott website for more information: http://www.scott-scott.com.
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Based in New York, New York, Ventrus is a development stage pharmaceutical company which is focused on late-stage prescription drugs for the treatment of gastrointestinal disorders, specifically hemorrhoids, anal fissures, and fecal incontinence. Ventrus' lead products are topical treatments for hemorrhoids, which target a specific serotonin receptor.
The securities class action charges that, throughout the Class Period, Ventrus misled investors concerning the Company's lead product iferanserin (VEN 309) ("VEN 309"). Ventrus described VEN 309 as a new chemical entity for the topical treatment of symptomatic internal hemorrhoids. The Company stated that in seven clinical studies between 1993 and 2003, VEN 309 demonstrated good tolerability and no severe adverse events while showing statistically significant improvements in bleeding, itchiness, and pain.
Specifically, during the Class Period, Ventrus touted that it was in frequent and ongoing communications with the FDA, that clinical end points for the VEN 309 trial had been agreed to by the FDA, and that the prior results from Phase II trials of VEN 309 demonstrated the product's clinical efficacy. The Company represented its prior Phase IIb studies in Germany as evidence of VEN 309's efficacy and as support for its claims that FDA approval would be achieved. These false and misleading statements artificially inflated, maintained, and increased the price of Ventrus' common stock, which traded as high as $20.25 during the Class Period.
On June 25, 2012, Ventrus shocked the market when it issued a press release announcing that VEN 309 failed its Phase III trial before the FDA, and that the Company would suddenly abandon further development of VEN 309, including any further attempt to obtain FDA approval. In response to this news, the price of Ventrus common stock plummeted over 50% – to $5.02 per share on June 25, 2012, resulting in millions of dollars in losses to Ventrus shareholders.
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide.