NEW YORK--(BUSINESS WIRE)--Scott+Scott, Attorneys at Law, LLP (“Scott+Scott”), a national securities and consumer rights litigation firm, reminds investors that a class action lawsuit is pending against Novan, Inc. (NASDAQ: NOVN) (“Novan” or the “Company”) and other defendants, related to alleged violations of federal securities laws. If you purchased Novan common stock in or traceable to the Company’s initial public offering (“IPO”), on or about September 26, 2016, or if you purchased stock between September 26, 2016 and January 26, 2017 you are encouraged to contact a Scott+Scott attorney at (844) 818-6980 for additional information.
Novan is a drug development company that focuses on the development and commercialization of nitric oxide-based therapies in dermatology. At all relevant times, Novan’s lead product candidate was SB204, a once-daily topical gel for the treatment of acne vulgaris.
The lawsuit claims materially false and misleading statements were made regarding Novan’s business and outlook, specifically regarding SB204.
On January 27, 2017, Novan announced top-line results of the Company’s two Phase 3 clinical trials of SB204, advising investors that the drug had met its goals in only one of the studies. On this news, Novan’s share price fell $13.84, more than 74%, to close at $4.86 on January 27.
On June 5, 2017, Novan announced that it was replacing its Chief Executive Officer, Nathan Stasko, laying off 20% of its workforce, and executing a plan to turn its focus to earlier-stage compounds. On this news, Novan’s share price fell $0.22, or 4.53%, to close at $4.64 on June 5.
Additional disclosures on August 2, 2017 revealed that Novan was retreating further from SB204, causing the stock to drop more than 17% to close at $4.54 that day.
What You Can Do
If you purchased Novan stock between September 26, 2016 and January 26, 2017, inclusive, or if you have questions about this notice or your legal rights, please contact attorney Rhiana Swartz at (844) 818-6980, or at firstname.lastname@example.org. Investors have until January 2, 2018, to move for lead plaintiff.
About Scott+Scott, Attorneys at Law, LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.