RADNOR, Pa.--(BUSINESS WIRE)--The law firm of Kessler Topaz Meltzer & Check, LLP announces that a shareholder class action lawsuit has been filed against Synergy Pharmaceuticals Inc. (Nasdaq: SGYP) (“Synergy” or the “Company”) on behalf of purchasers of the Company’s securities between September 5, 2017 and November 14, 2017, inclusive (the “Class Period”).
Synergy shareholders who purchased securities during the Class Period may, no later than April 10, 2018, seek to be appointed as a lead plaintiff representative of the class.
Shareholders who wish to discuss this action or request additional information about the lawsuit are encouraged to contact Kessler Topaz Meltzer & Check attorneys D. Seamus Kaskela or Adrienne Bell at (888) 299-7706 or online at: https://www.ktmc.com/new-cases/synergy-pharmaceuticals-inc#join.
Synergy is a biopharmaceutical company focused on the development and commercialization of therapies to treat gastrointestinal disorders and diseases. On September 5, 2017, the Company issued a press release announcing that it had “closed on a $300 million debt financing structured as senior secured loans from CRG LP, a healthcare focused investment firm, and its lender syndicate” (the “CRG Loan”). At that time, Synergy’s Chief Financial Officer represented to investors that the CRG Loan was “non-dilutive financing.”
However, as detailed in the shareholder class action complaint, Synergy and certain of its executive officers failed to disclose that the CRG Loan was subject to various onerous terms and conditions, and made a series of false and misleading statements to investors about the CRG Loan, including: (i) its purported non-dilutive effect; (ii) its availability; and (iii) its sufficiency to fund the Company’s operations.
On November 9, 2017, Synergy filed a Form 10-Q with the SEC and disclosed the CRG Loan’s terms and conditions. Specifically, and as detailed in the complaint, “the terms of the CRG Loan were dilutive to the outstanding equity interests of shareholders,” and the CRG Loan by itself could not and would not provide Synergy with sufficient financial flexibility or funding. Following this news, shares of the Company’s common stock declined over 8.4%, to close at $2.72 per share on November 10, 2017.
Subsequently, on November 13, 2017, the Company announced that it had priced an equity offering of common stock and warrants. Following this additional news, shares of the Company’s common stock continued to decline, and closed as low as $1.89 per share on November 15, 2017.
Synergy shareholders may, no later than April 10, 2018, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class in the action. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.