Verrica Pharmaceuticals Inc. Class Action Lawsuit
- Company Name
- Verrica Pharmaceuticals Inc.
- Stock Symbol
- Class Period
- September 16, 2019 to June 29, 2020
- District of Pennsylvania
The Verrica Pharmaceuticals Inc. class action lawsuit charges Verrica and certain of its officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of Verrica publicly traded securities between September 16, 2019 and June 29, 2020, inclusive (the “Class Period”). The Verrica class action lawsuit was commenced on July 14, 2020 in the Eastern District of Pennsylvania and is captioned Potter v. Verrica Pharmaceuticals Inc., No. 20-cv-03447.
Verrica is a dermatology therapeutics company that develops treatments for people living with skin diseases. Verrica’s lead product candidate, VP-102, is a drug-device combination of a topical solution of cantharidin administered through Verrica’s single-use precision applicator.
The Verrica class action lawsuit alleges that defendants made materially false and/or misleading statements, as well as failed to disclose that: (1) Verrica’s proprietary applicator for VP-102 posed certain safety risks if the instructions were not properly followed; (2) in response, Verrica had incorporated an additional user feature to mitigate the safety risk; (3) the addition of the user feature would require additional stability supportive data on the fully assembled device; (4) as a result of the foregoing, regulatory approval for VP-102 was reasonably likely to be delayed; and (5) as a result of the foregoing, defendants’ positive statements about Verrica’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On June 29, 2020, Verrica disclosed receipt of a letter from the U.S. Food and Drug Administration (“FDA”) regarding Verrica’s New Drug Application for VP-102 for the treatment of molluscum contagiosum. The letter identified certain deficiencies that precluded discussion of labeling and post-marketing requirements. Moreover, according to Verrica, one of the FDA’s information requests “related to a potential safety issue with the applicator that could arise if the instructions for use were not properly followed.” On this news, the price of Verrica shares fell nearly 22%.
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