Rain Oncology Leaders Allegedly Misled on Cancer Drug Progress

Rain Oncology Inc. executives and directors allegedly misled investors about the company’s progress developing a cancer drug, milademetan, resulting in a stock drop when a clinical trial revealed that the drug was ineffective, a shareholder derivative suit says.

The treatment for dedifferentiated liposarcoma—a rare and aggressive cancer of the fatty tissue—didn’t undergo a phase two clinical trial typically intended to test the safety, dosing, and effectiveness of a drug, and company leaders allegedly misrepresented the risks associated with skipping this step and the design of the phase three trial, according to the complaint filed Wednesday in the US District Court ...