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Reata Pharmaceuticals (RETA) agreed to settle $45 million with shareholders to end claims over failing to disclose concerns about the validity of a clinical study for kidney disease candidate, bardoxolone.

Reata Pharmaceuticals developed a drug called bardoxolone for kidney disease. They applied for FDA approval, highlighting positive study results. 

However, Reata supposedly didn't reveal FDA concerns about the study's validity, risking the drug's approval.

On December 6, 2021, the FDA questioned the study design, causing $RETA to drop by 38%. 

Two days later, the FDA declared bardoxolone ineffective, leading to an additional 46% $RETA decline. 

Reata has now decided to resolve all the allegations and pay a $45M settlement.

Reata Pharmaceuticals Inc

All persons or entities who purchased or otherwise acquired the publicly traded common stock of Reata between November 14, 2016 and December 8, 2021, inclusive, including all persons or entities who purchased or otherwise acquired Reata common stock pursuant and/or traceable to Reata’s 2019 Offering and/or 2020 Offering.

Do I have to sell securities to be eligible?

No, if you have purchased securities within the class period, you are eligible to participate.

You can participate in the settlement and retain (or sell) your securities.

The final payout amount depends on your specific trades and the number of investors participating in the settlement.

If 100% of investors file their claims - the average payout will be $1.67 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $6.68 per share.

The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.

11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:

Audit the claim and make sure you get the maximum possible payout

File a claim with the settlement administration

Correspond with the settlement administration to resolve emerging issues

Deliver payout directly to your brokerage account

There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.

Disbursement

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Directors

Management

Reata Pharmaceuticals (RETA) $45M Shareholder Settlement

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Reata Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, identifies, develops, and commercializes novel therapeutics for patients with serious or life-threatening diseases. The company is developing Phase 3 clinical trial programs, including bardoxolone methyl (bardoxolone) for the treatment of patients with chronic kidney disease (CKD) caused by Alport syndrome, as well as for a form of pulmonary arterial hypertension associated with connective tissue disease; omaveloxolone to treat Friedreich's ataxia; and conduct various form of CKD, such as, type 1 and type 2 diabetic CKD, type 1 and type 2 diabetic CKD, hypertensive CKD, focal segmental glomerulosclerosis, and others. It is also developing RTA 901 for neurological diseases; and bardoxolone for the treatment of autosomal dominant polycystic kidney disease. In addition, the company has a strategic collaboration agreement with Kyowa Kirin Co., Ltd. to develop and commercialize bardoxolone for renal, cardiovascular, diabetes, and various other related metabolic indications in Japan, China, Hong Kong, Macao, South Korea, Taiwan, Thailand, Singapore, the Philippines, Malaysia, Indonesia, Brunei, Vietnam, Laos, Myanmar, and Cambodia; AbbVie Inc. to jointly research, develop, and commercialize all second- and later-generation Nrf2 activators for all indications other than renal, cardiovascular, and metabolic indications. Reata Pharmaceuticals, Inc. was incorporated in 2002 and is headquartered in Plano, Texas. As of September 26, 2023, Reata Pharmaceuticals, Inc. operates as a subsidiary of Biogen Inc.

Reata Pharmaceuticals (RETA) $45M Shareholder Settlement

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