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Aveo Pharmaceuticals, Inc. Sued by Investor
Date:5/17/2013

SAN DIEGO and CAMBRIDGE, Mass., May 17, 2013 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP announce that a purchaser of Aveo Pharmaceutical, Inc. (NASDAQGS: AVEO) securities has filed a complaint in the U.S. District Court for the District of Massachusetts.  The complaint alleges that Aveo and certain of its officers violated the Securities Exchange Act of 1934 (the "Exchange Act") between January 3, 2012 and May 1, 2013 (the "Class Period").

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Aveo Accused of Making False and Misleading Statements Concerning the Company's Business Prospects

The complaint alleges that Aveo, a biopharmaceutical company that focuses on discovering, developing, and commercializing cancer therapies, issued a series of materially false and misleading statements to investors regarding the viability of the company's lead drug Tivopath (or tivozanib).  Specifically, the complaint alleges that the defendants misled investors to believe that Tivopath would receive approval from the U.S. Food and Drug Administration ("FDA") by touting Tivopath's Phase III trial design and results.  The complaint accuses the defendants of violations of the Exchange Act by virtue of their failure to disclose during the Class Period that: (i) the FDA had recommended that Aveo conduct an additional Phase 3 trial for Tivopath due to adverse trends in the company's first Phase III trial; (ii) there was a 25% higher rate of death associated with Tivopath, compared to the control drug, Sorafenib; and (iii) nearly 90% of the patients studied in the company's Phase III trial were enrolled from sites in Central and Eastern Europe, where treatment patterns were inconsistent with those
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SOURCE Robbins Arroyo LLP
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