CASES
MELA Sciences, Inc.
Class Period: Feb 13, 2009 to Nov 16, 2010
Lead Plaintiff Deadline: Jan 21, 2011 + Deadline passed
Summary of Case:
A securities class action has been filed against Mela Sciences, Inc. (MELA) ("MELA" or the "Company") on behalf of all securities purchasers from February 13, 2009 through November 16, 2010, inclusive ("Class Period"), in the United States District Court for the Southern District of New York.
The complaint alleges that throughout the Class Period, defendants conditioned investors to believe that FDA approval of MELA's flagship product, MelaFind, would be forthcoming through a host of materially false and misleading statements regarding the status of MelaFind's ongoing clinical studies, and the safety and efficacy of the Company's products. For instance, on February 13, 2009, defendants announced "positive top-line results of its pivotal trial of MelaFind, a non-invasive, point-of-care instrument to assist in the early detection of melanoma, the deadliest form of skin cancer."
In touting positive aspects of MelaFind, defendants were able to, among other things: (a) deceive the investing public regarding the Company's business, operations, management, future business prospects and the intrinsic value of MELA's common stock; (b) deceive the investing public regarding MELA's business and management; (c) deceive the investing public regarding the efficacy of MelaFind and its prospects for FDA approval; (d) enable defendants to sell almost $79 million of MELA's common stock to the public while in possession of material adverse non-public information about the Company; and (e) cause plaintiff and other members of the Class to purchase MELA common stock at artificially inflated prices.
Finally, on November 16, 2010, however, investors learned the truth concealed by defendants' Class Period misstatements. On that date, it was reported, in part, that MelaFind "could cause harm because of the potential for misdiagnosis," and that "FDA staff pointed to numerous problems with Mela's study of the device, called MelaFind, including a significant lack of data, and urged a new clinical trial."
On this news, investors were shocked to learn the truth regarding MelaFind. As a result, MELA's stock price plummeted approximately 46% on heavy trading volume, to close at $2.92 per share.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.