ChemoCentryx Directors, Officers Oversold Drug Data, Suit Says

Clinical tests on a new ChemoCentryx Inc. drug for a blood vessel condition produced results that were less clearly beneficial than the company’s CEO, other officers, and directors initially led the public to believe, a shareholder says in a new derivative suit in California federal court over a drop in stock prices.

ChemoCentryx’s stock price soared on the statements about avacopan, its lead drug candidate, shareholder Joseph Napoli says in the complaint, filed Tuesday in the U.S. District Court for the Northern District of California.

But after months of positive comments by CEO Thomas J. Schall and others, the U.S. ...