Odonate Therapeutics Officers and Directors Under Investigation for Possible False Statements to Investors

Schubert Jonckheer & Kolbe LLP is investigating potential derivative claims on behalf of shareholders of Odonate Therapeutics, Inc. (NASDAQ: ODT) relating to possible false statements to investors regarding its only product, tesetaxel, a drug the company was formerly developing for the treatment of breast cancer.

A securities class action in the U.S. District Court for the Southern District of California recently survived a motion to dismiss allegations that between December 7, 2017 and March 19, 2021, Odonate and its CEO, CFO, and COO made false and misleading statements about the safety of tesetaxel, which was then undergoing a Phase 3 clinical trial for the treatment of breast cancer. On March 22, 2021, Odonate issued a shocking press release announcing that it was ending tesetaxel’s development entirely following private feedback from the FDA that the drug was unlikely to receive approval on the basis of its clinical data package, which the company had only recently disclosed included potentially serious side effects. On this news, the company’s stock price fell 79%, wiping out hundreds of millions of dollars of shareholder value. The plaintiff in the class action alleges that Odonate and its managers knew about these serious safety concerns long before they were disclosed publicly.

The Schubert Firm is investigating potential breaches of fiduciary duty by the company’s officers and directors in connection with these allegations.

If you own stock in Odonate and wish to obtain additional information about your legal rights—please complete the form below for a free legal consultation.