Aradigm Corporation Files Chapter 11 Bankruptcy Protection
Have you suffered losses investing in Aradigm? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
Aradigm, Inc. (Nasdaq: ARDM), based in Hayward, California, reportedly filed for bankruptcy protection on February 15, 2019, according to a press announcement.
Aradigm’s reported financial challenges were in connection with its respiratory drug delivery system for an antibiotic to treat certain types of chronic lung infections.
The FDA reportedly rejected the drug on Jan. 29, 2018 and requested the company run an additional two-year Phase 3 study. This was not an easy feat for Aradigm, after reportedly finishing the last fiscal year with $7.1 million in cash and equivalents, according to an article in BioPharma Dive.
Additionally, many antibiotic drugmakers are reportedly leaving the industry after the rise of antimicrobial resistance as a leading public health threat.
Recovery of Investment Losses
The problem with biopharmaceutical stocks such as Aradigm is that they typically involve a high degree of risk. The research and development process for pharma companies often involves costly and lengthy clinical testing trials that yield specific data. If the expected data or end points are not met, the stock can drop drastically.
Without a strong understanding of the company and its basic operations, investors may be looking at serious losses.
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly recommending high-risk biopharma stocks, like Aradigm to investors.
Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.
If you have concerns regarding investment losses in Aradigm, please call the securities attorneys at The White Law Group for a free consultation at 888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.