Odonate Therapeutics Inc. (OTC: ODTC) has agreed to pay $12.5 million to resolve a proposed securities class action in alleging the pharmaceutical company misled investors about the safety of a new drug for treating cancer. The lawsuit accused the company of making misleading statements and omissions about the development of tesetaxel. The amended complaint says the company and its officers unlawfully inflated the stock price by misleading investors about a clinical trial and the likelihood of FDA approval.
On Dec. 3, the named plaintiff filed an unopposed motion for preliminary approval of the class action settlement. The settlement was reached several months after Odonate lost a bid to throw out the allegations when a federal judge in California found investors sufficiently pleaded their case.
Current Odonate shareholders who have held shares of Odonate stock since at least December 7, 2017, can seek corporate reforms, the return of funds back to company coffers and potentially a court approved incentive award if appropriate.
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