The Shareholders Foundation announced that an investor, who purchased shares of Intercept Pharmaceuticals Inc (NASDAQ:ICPT), filed a lawsuit in the U.S. District Court for the Southern District of New York ,over alleged violations of Federal Securities Laws by Intercept Pharmaceuticals Inc in connection with certain allegedly false and misleading statements made between January 9, 2014 and January 10, 2014
Investors who purchased a shares of Intercept Pharmaceuticals Inc (NASDAQ:ICPT) have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 – 1554.
According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired securities of Intercept Pharmaceuticals Inc (NASDAQ:ICPT) between, that Intercept Pharmaceuticals Inc and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
More specifically, the plaintiff claims that on January 9, 2014 and January 10, 2014, Intercept Pharmaceuticals Inc announced that its Phase 2 trial of OCA for the treatment of NASH had been stopped early for efficacy based on an interim analysis that showed that the efficacy endpoint of the trial had been met and that as a result of the Company’s announcements, Intercept Pharmaceuticals Inc’s stock price skyrocketed from a January 8, 2014 close of $72.39 per share to a January 10, 2014 close of $445.83 per share.
On January 9, 2014, Intercept Pharmaceuticals announced that the FLINT clinical trial study of obeticholic acid (OCA) was stopped early for efficacy after a planned interim analysis showed the primary endpoint had been met. OCA is being developed by Intercept for the treatment of nonalcoholic steatohepatitis. On this news announcement, shares of Intercept Pharmaceuticals increased over 500% over the next two trading sessions.
After the market close on Friday, January 10, 2014, The Wall Street Journal issued a report via a statement made by the National Institutes of Health stating that patients treated with Intercept’s OCA in the clinical trial experienced “lipid abnormalities,” higher levels of “bad” LDL cholesterol and lowers levels of “good” HDL cholesterol, compared to patients treated with placebo.
On Sunday, January 12, 2014, Intercept Pharmaceuticals made an announcement providing additional details of the OCA study including the lipid abnormalities disclosed in The Wall Street Journal report. In midday trading on Tuesday, January 14, 2014, the stock has traded down as much as $210.83 or 47% since the announcement made on Sunday.
Those who purchased shares of Intercept Pharmaceuticals Inc (NASDAQ:ICPT) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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