NEW YORK, Sept. 15, 2016 /PRNewswire/ -- WeissLaw LLP
announces that a class action has been filed in the United States
District Court for the Southern District of New York against Tokai Pharmaceuticals, Inc.
("Tokai" or the "Company") (TKAI) and certain Company officers, for
among other things, violation of sections 10(b) and 20(a) of the
Securities and Exchange Act of 1934 (the "Exchange Act"). The class
action seeks to pursue remedies on behalf of all person or entities
who purchased or otherwise acquired shares of Tokai between
June 24, 2015 and
July 25, 2016 (the "Class
Period").
On July 26, 2016, Tokai announced
that it will discontinue its AMORS3-SV clinical trial, phase 3
study of the Company's highly anticipated Galeterone drug. On
that news, Tokai shares nose-dived from the previous day's closing
price of $5.20 to a low of
$1.08. The news follows reports
of a drug trial plagued with challenges. Among those reports,
Seeking Alpha's "What's Wrong With Tokai Pharmaceuticals?"
published late last year, revealed numerous structural problems
with the trial and predicted the failure of phase 3 of the
trial.
The complaint alleges that Defendants made materially false
and/or misleading statements, as well as failed to disclose
information with regard to Tokai's operations and compliance
policies by: (i) failing to inform and/or misrepresent the
structural problems of phase 3 of the Galeterone trial to
shareholders, which subsequently resulted in the failure of the
trial; and (ii) filing materially false and/or misleading financial
statements.
If you wish to serve as lead plaintiff, you must move the Court
no later than September 30,
2016. If you wish to discuss this action or have
any questions concerning this notice or your rights or interests,
please contact Joshua Rubin of
WeissLaw LLP at 888.593.4771, or by e-mail at
stockinfo@weisslawllp.com. Any member of the Class may
move the Court to serve as lead plaintiff through counsel of their
choice, or may choose to do nothing and remain an absent Class
member.
WeissLaw LLP has litigated hundreds of stockholder class and
derivative actions for violations of corporate and fiduciary
duties. We have recovered over a billion dollars for
defrauded clients. For more information about the firm,
please go to: http://www.weisslawllp.com.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/weisslaw-llp-announces-class-action-lawsuit-against-tokai-pharmaceuticals-inc-300329040.html
SOURCE WeissLaw LLP