NEW YORK--(BUSINESS WIRE)--The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Synergy Pharmaceuticals Inc. (NASDAQ: SGYP) who purchased shares between September 5, 2017 and November 14, 2017. The action, which was filed in the United States District Court for the Eastern District of New York, alleges that the Company violated federal securities laws.
In particular, the complaint alleges that throughout the Class Period, defendants made materially false and/or misleading statements and/or failed to disclose that (1) the loan from CRG Partners III L.P. (“CRG Loan”) did not fund Synergy’s operations through 2019; (2) the Company could not access the second tranche of $100 million financing on or before February 28, 2018 without issuing dilutive equity; and (3) the Company could not access the third tranche of the CRG Loan if and when needed because terms were required to be met in order to access those tranches.
On September 5, 2017, Synergy issued a press release announcing it had closed on a “non-dilutive” $300 million loan from CRG Partners III L.P., which would be available to Synergy “when needed” and fund the Company’s operations through 2019. On November 14, 2017, Synergy revealed that terms of the loan agreement, omitted from prior statements regarding the loan, prevented it from accessing $200 million of the loan without conducting a dilutive secondary offering or offerings of shares to raise cash and, as such, the Company was conducting a secondary offering of its shares.
Shareholders have until April 10, 2018 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
If you suffered a loss during the class period and wish to obtain additional information, please contact Joseph Klein, Esq. by telephone at 212-616-4899 or visit http://www.kleinstocklaw.com/pslra-c/synergy-pharmaceuticals-inc?wire=2.
Joseph Klein, Esq. represents investors and participates in securities litigations involving financial fraud throughout the nation. Attorney advertising. Prior results do not guarantee similar outcomes.