DALLAS--(BUSINESS WIRE)--Former United States Securities and Exchange Commission attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, and the securities litigation firm of Powers Taylor LLP announce that a federal class action lawsuit has been filed in the United States District Court, District of Massachusetts against Chiasma, Inc. (“Chiasma”) (NASDAQ: CHMA) and several officers and directors for acts taken during the period of July 15, 2015 and April 17, 2016 (the “Class Period”).
Shareholders who suffered a loss during the class period have until August 8, 2016 to seek appointment as lead plaintiff. If you lost more than $100,000.00 from shares purchased during the class period and wish to take a more proactive role in the litigation, you are urged to contact Willie Briscoe at The Briscoe Law Firm, PLLC via email at shareholders@thebriscoelawfirm.com, Patrick Powers at Powers Taylor LLP via email at shareholder@powerstaylor.com, or call toll free at (877) 728-9607. There is no cost or fee to you.
According to the complaint, the defendants are alleged to have violated certain provisions of the Securities Exchange Act of 1934. Specifically, the complaint alleges, among other things, that defendants made false and/or misleading statements and/or failed to disclose that (1) Chiasma’s Phase 3 clinical trial for Mycapssa was not adequate to show effectiveness for FDA approval; (2) Chiasma’s management of its suppliers was not adequate to avoid mistakes, thus delaying FDA approval; and (3) consequentially, Chiasma’s public statements were materially false and misleading at all relevant times.
Before the market opened on April 18, 2016, Chiasma announced that the U.S. Food and Drug Administration (“FDA”) had issued a Complete Response Letter for Mycapssa’s new drug application, explaining that the FDA did not see ample proof of efficacy to warrant approval and advising the Company to conduct another clinical trial to address this deficiency. The FDA also listed its apprehensions about certain aspects of Chiasma’s single-arm, open-label Phase 3 clinical trial and strongly recommended a randomized, double-blind and controlled trial that enrolls patients from the United States and for a long enough duration to ensure that control of disease activity is stable at the time point selected for the primary efficacy assessment. The FDA instructed that certain deficiencies that were found at a recent site inspection would also need to be resolved before approval. Chiasma stock dropped significantly immediately following this announcement.
The Briscoe Law Firm, PLLC is a full service business litigation, commercial transaction, and public advocacy firm with more than 20 years of experience in complex litigation and transactional matters.
Powers Taylor LLP is a boutique litigation law firm that handles a variety of complex business litigation matters, including claims of investor and stockholder fraud, shareholder oppression, shareholder derivative suits, and security class actions.
