SAN DIEGO & MALVERN, Pa.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Recro Pharma, Inc. (NasdaqCM: REPH) have filed a class action complaint against the company's officers and directors for alleged violations of the Securities Exchange Act of 1934 between July 31, 2017 and May 23, 2018. Recro is a specialty pharmaceutical company that develops non-opioid products for the treatment of acute pain primarily in the United States. The company's lead product is a proprietary injectable form of meloxicam ("IV meloxicam") to be used for pain management.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/recro-pharma-inc
Recro Accused of Misleading Investors About Its Drug's Approval Prospects
According to the complaint, Recro made a series of positive statements about its IV meloxicam drug, emphasizing that it was well-tolerated and demonstrated a solid safety profile. Recro further stated that the drug showed significant reductions in pain and that it had the potential to be an "attractive non-opioid alternative for physicians and patients for the treatment of acute, postoperative pain." Despite these encouraging statements, IV meloxicam lacked supporting clinical data to show sufficient clinical benefits in order to receive approval by the U.S. Food and Drug Administration ("FDA"). On May 24, 2018, Recro announced that the FDA declined to approve Recro's New Drug Application for IV meloxicam because the analgesic effect didn’t meet the FDA's expectations. On this news, Recro's stock price fell over 54% to close at $5.63 per share on May 24, 2018, and continues to decline.
Recro 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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