Zynerba Pharmaceuticals, Inc. Class Action Lawsuit
- Company Name
- Zynerba Pharmaceuticals, Inc.
- Stock Symbol
- Class Period
- March 11, 2019 to September 17, 2019
- Motion Deadline
- December 22, 2019
- Eastern District of Pennsylvania
On October 23, 2019, the Zynerba Pharmaceuticals, Inc. class action lawsuit was filed charging Zynerba and certain of its officers with violations of the Securities Exchange Act of 1934. The Zynerba class action lawsuit was commenced in the Eastern District of Pennsylvania on behalf of purchasers of Zynerba securities between March 11, 2019 and September 17, 2019 (the “Class Period”) and is captioned Velayos v. Zynerba Pharmaceuticals, Inc., No. 2:19-cv-04959.
Zynerba is a clinical stage specialty pharmaceutical company focused on developing pharmaceutically produced transdermal cannabinoid (“CBD”) therapies for rare and near-rare neuropsychiatric disorders.
Among Zynerba’s product candidates is Zygel (ZYN002), a transdermal CBD gel being evaluated in a Phase II clinical trial for treating children and adolescent patients with developmental and epileptic encephalopathies (“DEE”), a Phase II/III clinical trial to treat children and adolescent patients with fragile X syndrome, and a Phase II clinical trial for treating children and adolescent patients with autism spectrum disorder. In April 2018, Zynerba initiated the Phase 2 BELIEVE 1 clinical trial, a six-month open label multi-dose clinical trial designed to evaluate the efficacy and safety of Zygel in children and adolescents (ages three to seventeen years) with DEE.
The Zynerba class action lawsuit alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose adverse information regarding Zynerba’s prospects for its Zygel product candidate. Specifically, defendants failed to disclose that Zygel was proving unsafe and not well tolerated in the BELIEVE 1 trial, which created a foreseeable, heightened risk that Zynerba would fail to secure the necessary regulatory approvals for commercializing Zygel for the treatment of DEE in children and adolescents. As a result of this information being withheld from the market, Zynerba securities traded at artificially inflated prices during the Class Period, with Zynerba’s stock price reaching a high of nearly $16 per share.
Then, on September 18, 2019, before the market opened, Zynerba announced the results from the BELIEVE 1 trial evaluating Zygel in children and adolescents with DEE. While Zynerba asserted that Zygel was well tolerated, it also disclosed that, among patients enrolled in the BELIEVE 1 trial, 96% of patients experienced treatment emergent adverse events, 60% experienced treatment related adverse events, and ten patients reported serious adverse events (“SAEs”), of which “two SAEs (lower respiratory tract infection and status epilepticus) were determined to be possibly related to treatment.” On this news, the price of Zynerba stock fell $2.46 per share, or more over 21%, to close at $8.84 per share on September 18, 2019.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Zynerba securities during the Class Period to seek appointment as lead plaintiff in the Zynerba class action lawsuit. A lead plaintiff will act on behalf of all other class members in directing the Zynerba class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Zynerba class action lawsuit. An investor’s ability to share in any potential future recovery of the Zynerba class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Zynerba class action lawsuit or have questions concerning your rights regarding the Zynerba class action lawsuit, please provide your information here or contact counsel, Brian E. Cochran of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. Lead plaintiff motions for the Zynerba class action lawsuit must be filed with the court no later than December 22, 2019.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.