Settlement of John J. Gerneth v. Chiasma, Inc., et al., Case No. 1:16-cv-11082-DJC
The parties have reached a settlement of this action, pending in the United States District Court for the District of Massachusetts. The settlement provides for the payment of $18,750,000 for the benefit of eligible Class Members. Lead Plaintiff Laurent Sberro alleged that Defendants concealed material information that caused statements included in the IPO Registration Statement and Prospectus (collectively, the “Offering Materials”) to be false and misleading. The Offering Materials and Defendants’ other Class Period statements failed to disclose that the methodology employed in Chiasma, Inc.’s (“Chiasma”) Phase 3 clinical trial for Mycapssa was not sufficient to demonstrate efficacy and secure FDA approval.
The Class consists of all Persons who purchased or acquired common stock issued by Chiasma on or before June 9, 2016, pursuant or traceable to Chiasma’s IPO held on or about July 15, 2015. Excluded from the Class are: Defendants, the present and former officers and directors of Defendants, members of the immediate family of any Individual Defendant and the legal representatives, heirs, successors or assigns of any of the foregoing, and any entity in which Defendants have or had a controlling interest during the Class Period. Also excluded from the Class is any Class Member that validly and timely requests exclusion in accordance with the requirements set by the Court.
The settlement was approved by the Court on June 27, 2019.
If you have any questions about the settlement or the litigation, please contact Rick Nelson at 1-800-449-4900.