NEW YORK, July 17, 2023 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of all persons or entities who purchased the securities of Rain Oncology Inc. (“Rain” or the “Company”) (NASDAQ: RAIN) between July 20, 2021 and May 19, 2023, both dates inclusive (the “Class Period”).
The Complaint alleges that Rain’s lead drug candidate was milademetan, a drug designed to treat dedifferentiated liposarcoma (“DD LPS”). Rain first licensed milademetan from Daiichi Sankyo Company, Limited, in September 2020 based on positive results from a Phase 1 clinical trial. Instead of conducting additional trials to test the safety and dosing of milademetan, Rain proceeded straight to a Phase 3 clinical trial. Rain referred to the Phase 3 trial as the “MANTRA” trial.
Rain commenced the MANTRA trial in July 2021. For nearly two years, Rain provided the market with false and misleading information about the trial’s design quality and approval risks for milademetan related to its clinical development strategy. Then, on Monday, May 22, 2023, Defendants announced topline data from the MANTRA trial, revealing that milademetan had failed to show statistical significance on the trial’s primary endpoint and that the Company was abandoning further pursuit of milademetan for treating DD LPS. On this news, the price of Rain stock fell $8.71 per share to close at $1.22 on May 22, 2023, a nearly 88% loss in value.
Investors who purchased or otherwise acquired shares of Rain should contact the Firm prior to the September 12, 2023 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com .
Please visit our website at http://www.gme-law.com for more information about the firm.