SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in Chiasma, Inc. of Class Actio...
July 24 2016 - 9:00AM
Pomerantz LLP announces that a class action lawsuit has been filed
against Chiasma, Inc. (“Chiasma” or the “Company”) (NASDAQ:CHMA)
and certain of its officers. The class action, filed in
United States District Court, District of Massachusetts, and
docketed under 16-cv-11082, is on behalf of a class consisting of
all persons or entities who purchased or otherwise acquired Chiasma
securities between July 15, 2015 and April 17, 2016 inclusive (the
“Class Period”). This class action seeks to recover damages
against Defendants for alleged violations of the federal securities
laws under the Securities Exchange Act of 1934 (the “Exchange Act”)
and the Securities Act of 1933 (the “Securities Act”).
If you are a shareholder who purchased
securities during the Class Period, you have until August 8, 2016
to ask the Court to appoint you as Lead Plaintiff for the
class. A copy of the Complaint can be obtained at
www.pomerantzlaw.com. To discuss this action, contact Robert
S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or
888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail
are encouraged to include their mailing address, telephone number,
and number of shares purchased.
[Click here to join this class
action]
Chiasma, a late-stage biopharmaceutical company,
focuses on developing and commercializing oral forms of therapies
for patients suffering from orphan diseases. Chiasma was
founded in 2001 and is headquartered in Newton, Massachusetts.
The Company’s lead product candidate is oral
octreotide, or Mycapssa, for the treatment of acromegaly, a
condition that results in the body’s production of excess growth
hormone. As of June 2015, prior to Chiasma’s IPO, the Company
had completed a multinational Phase 3 clinical trial of Mycapssa
and submitted a new drug application (“NDA”) to the U.S. Food and
Drug Administration (“FDA”) seeking approval for marketing and sale
of Mycapssa.
On or about July 15, 2015, Chiasma completed its
IPO, issuing 6.4 million shares and raising net proceeds of
approximately $102 million.
The Complaint alleges that throughout the Class
Period, Defendants made materially false and misleading statements
regarding the Company’s business, operational and compliance
policies. Specifically, Defendants made false and/or misleading
statements and/or failed to disclose that: (i) Chiasma’s
Phase 3 clinical trial methodology for Mycapssa was not sufficient
to demonstrate efficacy and secure FDA approval; (ii) Chiasma’s
supervision of its suppliers was not sufficient to prevent
deficiencies that would delay FDA approval of Mycapssa; and (iii)
as a result of the foregoing, Chiasma’s public statements were
materially false and misleading at all relevant times.
On April 18, 2016, before the market opened, the
Company announced that the FDA had issued a Complete Response
Letter regarding its NDA for Mycapssa, stating that the FDA did not
believe the Company’s application had provided substantial evidence
of efficacy to warrant approval and advising Chiasma that it would
need to conduct another clinical trial in order to overcome this
deficiency. The FDA expressed concerns regarding certain
aspects of the company’s single-arm, open-label Phase 3 clinical
trial and strongly recommended that the company conduct a
randomized, double-blind and controlled trial that enrolls patients
from the United States and be of sufficiently long duration to
ensure that control of disease activity is stable at the time point
selected for the primary efficacy assessment. In addition,
the FDA advised that, during a recent site inspection, certain
deficiencies were conveyed to the representative of one of
Chiasma’s suppliers that would need to be resolved before approval.
On this news, Chiasma’s share price fell $6.42,
or 63.13%, to close at $3.75 on April 18, 2016.
The Pomerantz Firm, with offices in New York,
Chicago, Florida, and Los Angeles, is acknowledged as one of the
premier firms in the areas of corporate, securities, and antitrust
class litigation. Founded by the late Abraham L. Pomerantz, known
as the dean of the class action bar, the Pomerantz Firm pioneered
the field of securities class actions. Today, more than 80 years
later, the Pomerantz Firm continues in the tradition he
established, fighting for the rights of the victims of securities
fraud, breaches of fiduciary duty, and corporate misconduct. The
Firm has recovered numerous multimillion-dollar damages awards on
behalf of class members. See www.pomerantzlaw.com
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
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