Pomerantz Law Firm Announces the Filing of a Class Action against Reata Pharmaceuticals, Inc. and Certain Officers

<br /> Pomerantz Law Firm Announces the Filing of a Class Action against Reata Pharmaceuticals, Inc. and Certain Officers – RETA<br />

PR Newswire

NEW YORK, Oct. 15, 2020

NEW YORK

,

Oct. 15, 2020

/PRNewswire/ — Pomerantz LLP announces that a class action lawsuit has been filed against Reata Pharmaceuticals, Inc. (“Reata” or the “Company”) (NASDAQ: RETA) and certain of its officers. The class action, filed in

United States

District Court for the Eastern District of

Texas

, Sherman Division, and docketed under 20-cv-00796, is on behalf of a class consisting of all persons other than Defendants who purchased or otherwise, acquired Reata securities between

October 15, 2019

and

August 7, 2020

, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule

10b

-5 promulgated thereunder, against the Company and certain of its top officials.

If you are a shareholder who purchased Reata securities during the class period, you have until

December 14, 2020

, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at

www.pomerantzlaw.com

. To discuss this action, contact

Robert S. Willoughby

at

[email protected]

or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.

[Click here for information about joining the class action]

Reata is a clinical stage biopharmaceutical company that develops novel therapeutics for patients with serious or life-threatening diseases by targeting molecular pathways that regulate cellular metabolism and inflammation.

Among Reata’s drug candidates under development is omaveloxolone, which is in Phase 2 clinical development to treat Friedreich’s ataxia (“FA”). Following the announcement of positive data from the MOXIe Part 2 study of omaveloxolone for FA in

October 2019

, the Company represented that it would seek submission for marketing approval of omaveloxolone for the treatment of FA in the U.S. with the U.S. Food and Drug Administration (“FDA”).

The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the MOXIe Part 2 study results were insufficient to support a single study marketing approval of omaveloxolone for the treatment of FA in the U.S. without additional evidence; (ii) as a result, it was foreseeable that the FDA would not accept marketing approval of omaveloxolone for the treatment of FA in the U.S. based on the MOXIe Part 2 study results; and (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.

On

August 10, 2020

, during pre-market hours, Reata issued a press release announcing its second quarter 2020 financial results, wherein it disclosed that the FDA “is not convinced that the MOXIe Part 2 results” of the Company’s study assessing omaveloxolone for the treatment of FA “will support a single study approval without additional evidence that lends persuasiveness to the results,” and that, “[i]n preliminary comments for [a] meeting, the FDA stated that [Defendants] will need to conduct a second pivotal trial that confirms the mFARS [modified Friedreich’s Ataxia Rating Scale] results of the MOXIe Part 2 study with a similar magnitude of effect.”

On this news, Reata’s stock price fell

$51.79

per share, or 33.16%, to close at

$104.41

per share on

August 10, 2020

.

The Pomerantz Firm, with offices in

New York

,

Chicago

,

Los Angeles

, and

Paris

is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late

Abraham L. Pomerantz

, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See

www.pomerantzlaw.com

.