LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”) announces that a class action lawsuit has been filed on behalf of investors that purchased or otherwise acquired Synergy Pharmaceuticals Inc. (“Synergy” or the “Company”) (NASDAQ: SGYP) securities between September 5, 2017 and November 14, 2017, inclusive (the “Class Period”). Synergy investors have until April 10, 2018 to file a lead plaintiff motion.
To obtain information or actively participate in the class action, please visit the Synergy page on our website at www.glancylaw.com/case/synergy-pharmaceuticals-inc. Investors that suffered losses on their Synergy investments are encouraged to contact Lesley Portnoy of GPM to discuss their legal rights in this class action at 310-201-9150 or by email to email@example.com.
The Complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: the CRG Loan had critical undisclosed terms and conditions that prevented the Company from accessing funds "when needed," and that all but assured that Synergy would be required to conduct a dilutive secondary equity offering or offerings to fund its operations through 2019 and achieve its business objectives and secure the second $100 million tranche of the CRG Loan.
On September 5, 2017, Synergy stated that it obtained a “non-dilutive” $300 million loan from CRG Partners III L.P., to be available “when needed” to fund operations through 2019.
However, on November 14, 2017, Synergy disclosed (1) that the loan terms prevented the Company from accessing $200 million of the loan unless Synergy conducted a dilutive secondary offering, and (2) that Synergy was conducting a secondary offering to satisfy the term. As such, the loan was not available to Synergy “when needed,” and would result in dilution. On this news, shares of Synergy fell significantly, thereby injuring investors.
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If you purchased shares of Synergy during the Class Period you may move the Court no later than April 10, 2018 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to firstname.lastname@example.org, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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