NEW YORK, Feb. 11, 2019 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal class action lawsuit has been filed in the United States District Court for the Eastern District of New York on behalf of those who acquired Synergy Pharmaceuticals Inc., (“Synergy” or the “Company”) (NASDAQ: SGYP) securities between September 7, 2017 through October 25, 2018, inclusive (the “Class Period”) against certain of the Company’s executives and officers. This action is captained McMullen v. Hamilton, et al., No. 1:19-cv-00825.
Investors who purchased Synergy Pharmaceuticals Inc. shares and suffered losses are urged to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action on our website, www.whafh.com.
If you have incurred losses in the shares of Synergy during the Class Period, you may, no later than April 12, 2019, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights as an investor in Synergy.
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The filed Complaint alleges that Defendants violated the Securities Exchange Act of 1934 by misrepresenting and/or failing to disclose that:
- The Company’s launch of its primary product TRULANCE was not as successful as represented and as a result, revenues from TRULANCE underwhelmed;
- Synergy faced substantial risk that it would not be able to satisfy various covenants in its senior secure loan from CRG Partners III L.P. (“CRG”) due to the Company’s poor launch of TRULANCE and its underwhelming performance;
- Synergy’s relationship with CRG had soured and CRG was no longer willing to collaborate or be flexible with respect to requirements of the senior secure loan; and
- The Company’s strategic review had failed to yield a “white knight” or financing alternative and as a result, the Company was likely to default and enter into bankruptcy.
On October 25, 2018, Defendants revealed that Synergy’s strategic review process had failed to yield offers other than those significantly below the Company’s market value and similarly failed to produce any partnership opportunities. Further, Defendants disclosed that efforts to renegotiate the senior secured loan with CRG had proven unsuccessful and due to TRULANCE’s poor performance, the Company was likely to be in breach of several covenants of the senior secured loan and thus, default on the loan.
On this news, the price of Synergy shares fell $0.97 from $1.40 per share on October 25, 2018, to close at $0.43 per share on October 26, 2018.
After the Class Period, on December 12, 2018, Synergy announced that it voluntarily filed for Chapter 11 bankruptcy.
Plaintiff seeks to recover damages on behalf of all purchasers of Synergy publicly traded securities during the Class Period. The Plaintiff is represented by Wolf Haldenstein Adler Freeman & Herz LLP. Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at classmember@whafh.com, or visit our website at www.whafh.com.
Contact:
Wolf Haldenstein Adler Freeman & Herz LLP
Gregory Stone, Director of Case and Financial Analysis
Patrick Donovan, Esq.
Email: gstone@whafh.com, Donovan@whafh.com or classmember@whafh.com
Tel: (800) 575-0735 or (212) 545-4774
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