Aldeyra Therapeutics Sued For Touting Cancer Drug Spurned by FDA

Aldeyra Therapeutics, Inc., a biotechnology firm developing a cancer treatment titled ADX-2191, allegedly misled investors about the drug’s effectiveness and likelihood of regulatory approval, a proposed class action says.

The treatment did not receive the Food and Drug Administration’s greenlight, which the company told investors in a June 21 press release, prompting the share price to decline by 27% in a single day, according to the complaint filed in US District Court for the District of Massachusetts.

The Lexington, Massachusetts-based company allegedly misled investors for 16 months, touting the drug’s potential to become the first FDA-approved treatment for ...