WILMINGTON, Del., Aug. 04, 2016 (GLOBE NEWSWIRE) -- Rigrodsky & Long, P.A.:
- Do you, or did you, own shares of Tokai Pharmaceuticals, Inc. (NASDAQ:TKAI)?
- Did you purchase your shares between June 24, 2015 and July 25, 2016, inclusive?
- Did you lose money in your investment?
Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities that purchased the common stock of Tokai Pharmaceuticals, Inc. (“Tokai” or the “Company”) (NASDAQ:TKAI) between June 24, 2015 and July 25, 2016, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
If you purchased shares of Tokai during the Class Period, or purchased shares prior to the Class Period and still hold Tokai, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 2 Righter Parkway, Suite 120, Wilmington, DE 19803 at (888) 969-4242; by e-mail to info@rl-legal.com; or at: http://rigrodskylong.com/investigations/tokai-pharmaceuticals-inc-tkai.
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects. Specifically, the Complaint alleges that the defendants concealed from the investing public that: (1) there were significant structural problems with the trial design for Tokai’s pivotal Phase 3 galeterone study, ARMOR3-SV; (2) consequently, ARMOR3-SV was unlikely to succeed in meeting its primary endpoint; (3) as a result, commercialization of galeterone was less likely and/or imminent than Tokai had led investors to believe; and (4) as a result of the foregoing, the Company’s financial statements, as well as Defendants’ statements about Tokai’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis. As a result of defendants’ alleged false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on July 26, 2016, Tokai announced plans to “discontinue the ARMOR3-SV clinical trial, our pivotal Phase 3 study” of galeterone, the Company’s lead drug candidate.
On this news, shares of Tokai plummeted almost 79%, closing at $1.10 per share on July 26, 2016, on heavy trading volume.
Then, on July 29, 2016, after the market closed, Tokai issued a press release announcing that its Board of Directors approved a plan to reduce the Company’s workforce by approximately 60 percent. According to the release, this plan was designed to reduce its operating expenses while the Company conducts a comprehensive evaluation of strategic options for galeterone and its pipeline following the announcement on July 26, 2016.
If you wish to serve as lead plaintiff, you must move the Court no later than September 30, 2016. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the proposed 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.
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