BR&B Files Class Action Lawsuit Against Orexigen Therapeutics, Inc.

3/12/2015 - Barrack, Rodos & Bacine announces that it has filed a class action lawsuit in the United States District Court for the Southern District of California on behalf of purchasers of Orexigen Therapeutics, Inc. ("Orexigen") (OREX) common stock during the period between March 3, 2015 and March 5, 2015, inclusive (the "Class Period"). The Case is No. 15-cv-557-CAB-MDD. The complaint alleges that Orexigen and certain of its executives violated the Securities Exchange Act of 1934, and seeks to recover damages on behalf of all purchases of Orexigen common stock during the Class Period.  Click here for a copy of the complaint.

Orexigen, headquartered in La Jolla, California, is a biopharmaceutical company focused on the development of pharmaceutical product candidates for the treatment of obesity, including Contrave, which it claims "regulates appetite and energy expenditure through [central nervous system] activity."  The complaint alleges that as part of the FDA post-marketing approval process for Contrave, Orexigen was required to conduct a new, randomize-blind, placebo-controlled study to evaluate the effects of long-term treatment with Contrave on the incidents of major adverse cardiac events, or "MACE," in overweight and obese subjects with cardiovascular disease or multiple cardiovascular risk factors, referred to as a "LIGHT study."

On March 3, 2015, Orexigen disclosed detailed interim results of its LIGHT study. However, according to media reports, Orexigen had been warned by the U.S. Food & Drug Administration ("FDA") about inappropriately releasing interim study data in the past and, thus, knew that it would not be appropriate to release interim LIGHT study results on March 3, 2015. With the company's March 3, 2015 disclosures, the price of Orexigen common stock increased by more than 30%, from a closing price of $5.79 on March 2 to a closing price of $7.64 on March 3, 2015. The stock closed at even higher prices the next two days -- closing at $8.49 per share on March 4 and at $8.01 per share on March 5, 2015. Over the three days, more than 150 million shares of stock were traded. 

However, after the close of trading on March 5, 2015, Forbes published an article entitled "Top FDA official Says Orexigen Study Result 'Unreliable', "Misleading." As alleged in the complaint, the Forbes report contained comments from an FDA official charged with overseeing the Contrave post-marketing clinical trial program.  The FDA official reportedly stated that the interim data from the study was probably "unreliable," "misleading," and "likely false." The Forbes article commented that "[i]f Orexigen cannot find a way to set things right, it could face fines, civil penalties, or even the withdrawal of Contrave from the market."  After issuance of the Forbes article, the price of Orexigen stock fell significantly as trading resumed on March 6, 2015, falling to a low of $6.76 per share and resting at $7.10 per share by the close of the day.

If you purchased Orexigen common stock during the period from March 3, 2015 through March 5, 2015, you may be eligible to serve as a lead plaintiff and thereby participate in the direction of this litigation on behalf of the class members. If you wish to serve as a lead plaintiff, you are required to file a motion with the court no later than 60 days from March 10, 2015.

Plaintiff seeks to recover damages on behalf of all purchasers of Orexigen common stock during the Class Period.  The plaintiff is represented by Barrack, Rodos & Bacine, which has significant experience in prosecuting shareholder claims on behalf of investors in securities cases.  For more than 35 years, Barrack, Rodos & Bacine has successfully litigated major securities actions in courts throughout the United States.  As compiled by the Securities Class Action Clearinghouse at Stanford University and Cornerstone Research, Barrack, Rodos & Bacine has served as a lead counsel in some of the most successful securities class action cases, recovering over $11 billion for injured investors over the past dozen years, including three of the top ten case recoveries.

If you wish to serve as a lead plaintiff, you are required to file a motion with the court no later than 60 days from March 10, 2015.  To discuss your rights regarding the appointment of lead plaintiff and for additional information about this class action, please contact Barrack Rodos & Bacine partners Stephen R. Basser or Samuel M. Ward at (619) 230-0800, (215) 963-0600, or (212) 688-0782, or via email at sbasser@barrack.com or sward@barrack.com.  A copy of the complaint is available by clicking here.