HOUSTON (CN) - Directors of Respros Therapeutics defrauded investors by falsely claiming the drug Proellex, for uterine fibroids, had minimal side effects though tests had shown it caused liver damage, and the company's share price dropped by 75 percent when the truth came out, shareholders say in a federal class action.
When the U.S. Food and Drug Administration placed Proellex on "a clinical hold for safety reasons," Respros' share price dropped from $4.96 to $1.31, according to the complaint.
Respros officers Joseph Podolski, Paul Lammers and Louis Ploth are named as defendants along with the company itself. The class is represented by John Emerson.
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