Investors Sue Roche Over 'Misleading' Cancer Drug Study

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Roche Holding AG and two executives have been hit with a proposed class action lawsuit that claims they artificially inflated stock prices by publishing misleading statements to potential investors. According to the case, the pharmaceutical company produces a medicine known as Perjeta that it attempted to market as a treatment for breast cancer. On March 2, 2017, the defendants allegedly released a statement that claimed Perjeta, in combination with another medicine and chemotherapy, decreased the reoccurrence of breast cancer compared to treatment with the other medicine and chemotherapy alone. In June, however, the company released another statement with more specific results of the study, showing that its new medicine was “only marginally more effective” than older treatments, was not as cost effective, and may have adverse side effects, the complaint says. Upon this news, shares of Roche stock supposedly fell $1.76 per share. The suit claims that the drug manufacturer deceived investors by releasing its misleading March statement and then caused them to suffer losses when the truth was released in June.