Robbins Arroyo LLP: XOMA Corporation (XOMA) Misled Shareholders According to a Recently Filed Class Action

SAN DIEGO and BERKELEY, Calif., Aug. 3, 2015

View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/xoma-corporation

XOMA Misrepresents its Drug Trial

According to the complaint, XOMA initiated three clinical trials to evaluate gevokizumab for the treatment of, among other things, Behcet's disease uveitis, a multisystem inflammatory disorder most commonly involving the eyes which could lead to blindness.  Among the three trials is the Phase 3 EYEGUARD-B study for patients with Behcet's decease uveitis outside of the United States.  The complaint alleges that the company repeatedly made material representations concerning the imminent commercialization of gevokizumab, which in turn artificially inflated the prices of XOMA's securities.  Specifically, the company led investors to believe that the Phase 3 study would be concluded successfully and that approval from the U.S. Food and Drug Administration would then be sought.

On May 28, 2015, XOMA informed the market that it had reached its target exacerbation event as specified in the gevokizumab study, causing an increase in trading and leading to nearly an 8% jump in its share price on the day of the news.  However, on July 22, 2015, XOMA revealed that the study did not meet the primary endpoint of first acute ocular exacerbation.  On this news, XOMA stock fell $3.48, or over 79%, to open at $0.91 per share on July 22, 2015 on extremely high volume. 

XOMA Shareholders Have Legal Options

Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.