SAN DIEGO & MORRISVILLE, N.C.--(BUSINESS WIRE)--Third paragraph, fourth sentence of release dated December 06, 2017, should read: Following the disclosures, the company's Chief Medical Officer and Chief Financial Officer left the company, and Novan revealed that it was laying off 20% of its workforce. (instead of Following the disclosures, the company's Chief Medical Officer, Chief Financial Officer, and Chief Executive Officer left the company, and Novan revealed that it was laying off 20% of its workforce.)
The corrected release reads:
ROBBINS ARROYO LLP: NOVAN, INC. (NOVN) MISLED SHAREHOLDERS ACCORDING TO A RECENTLY FILED CLASS ACTION
Shareholder rights law firm Robbins Arroyo LLP announces that a class action complaint was filed against Novan, Inc. (NasdaqGM: NOVN). The complaint is brought on behalf of stockholders who purchased Novan securities pursuant to the company's initial public offering on September 26, 2016 (the "IPO"), and between September 26, 2016 and August 1, 2017, for alleged violations of the Securities Act of 1933 and the Securities Exchange Act of 1934 by Novan's officers and directors. Novan, a clinical-stage drug development company, develops nitric oxide-based therapies in dermatology. The company's lead product candidate, known as SB204, was designed for the treatment of acne vulgaris.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/novan-inc
Novan Accused of Lying About its Clinical Trials
According to the complaint, Novan officials represented that the company performed two identical Phase 3 clinical trials for SB204. Based on Novan's subsequent optimistic projections for SB204, Novan's stock climbed significantly above the IPO price of $11.00 per share, reaching a high of $29.09 per share on December 7, 2016. Not long after that, on January 27, 2017, Novan announced the results of the two trials—while the NI-AC302 trial hit all of its goals, the NI-AC301 trial failed to beat a placebo. Following the disclosures, the company's Chief Medical Officer and Chief Financial Officer left the company, and Novan revealed that it was laying off 20% of its workforce. On August 2, 2017, Novan disclosed that the company would be retreating from SB204 and refocusing on its other products. As a result of Novan's disclosures, Novan's stock fell over 84% from its class period high to close at $4.54 per share on August 2, 2017.
Novan Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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