Arena Pharmaceuticals, Inc. long term investor investigation

Oct. 4, 2010 - PRLog -- An Arena Pharmaceuticals investor has filed a lawsuit on behalf of all investors who purchased ARAN shares between Dec 8, 2008 and Sept. 16, 2010 against Arena Pharmaceuticals, Inc alleging violations of Federal Securities Laws in connection with the rejection of the lorcaserin New Drug Application by the US Food and Drug Administration. Meanwhile an investigation on behalf of current long term investors, including also those who purchased their ARNA shares (also) prior to December 2008 and continue to presently hold those shares, was announced.

If you are a current long term investor in Arena Pharmaceuticals, Inc.  securities, including those who purchased (also) prior to December 2008 and continue to presently hold those ARNA shares, you have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.

According to the complaint filed in the United States District Court for the Southern District of California the plaintiff alleges on behalf of all investors who purchased ARAN shares between Dec 8, 2008 and Sept. 16, 2010 that Arena Pharmaceuticals, Inc violated the Securities Exchange Act of 1934 and the Securities Act of 1933 in connection with the rejection of the lorcaserin New Drug Application by the US Food and Drug Administration. The plaintiff claims that Arena Pharmaceuticals, Inc represented to investors that the New Drug Application ("NDA") for its drug lorcaserin, or Lorqess, was based on extensive and robust data, and, that lorcaserin's combination of efficacy, safety and tolerability would position the drug candidate as first-line therapy for weight management. The investigation by a law firm on behalf of current long term ARNA investors concerns, among other things, whether certain members of the board of directors and certain officers  of Arena Pharmaceuticals breached their fiduciary duty in connection with the alleged securities laws violations.
On August 06, 2010, Arena Pharmaceuticals, Inc.  and Eisai Inc. announced that the US Food and Drug Administration (FDA) has notified the company of the confirmed scheduling of an Endocrinologic and Metabolic Drugs Advisory Committee meeting on September 16, 2010, for the review of the lorcaserin New Drug Application (NDA). Arena Pharmaceuticals, Inc said that Lorcaserin, which Arena discovered and has developed for weight management, is intended for obese patients as well as overweight patients who have at least one weight-related co-morbid condition.
Arena Pharmaceuticals, Inc. shares (ARNA) traded in June 2010 at roughly $3 per share before increasing to $7.95 per share in July. ARNA shares traded in August above $7, before getting into a free fall in the midst of September.
The Complaint further alleges that on September 14, 2010, investors began to learn the truth about lorcaserin when the FDA disclosed a Briefing Document titled NDA 22529 Lorqess (lorcaserin hydrochloride) Tablets, 10 mg Sponsor: Arena Pharmaceuticals Advisory Committee - September 16, 2010, which revealed, among other things, that lorcaserin caused cancer in rats in certain preclinical studies. Then on September 16, 2010, Arena Pharmaceuticals, Inc.  and Eisai Inc. announced  that the FDA Endocrinologic and Metabolic Drugs Advisory Committee voted 9 to 5 that the available data do not adequately demonstrate that the potential benefits of lorcaserin outweigh the potential risks, when used long-term in a population of overweight and obese individuals to allow marketing approval. After the announcement shares of Arena Pharmaceuticals, Inc.  decreased from $7.51 per share on September 08 to recently $1.55 per share, or a decrease more than 75%.

Those who are current long term investors in Arena Pharmaceuticals, Inc.  securities, including those who purchased (prior to December 2008 and continue to presently hold those ARNA shares, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.

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