NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Flex Pharma, Inc. (“Flex” or the “Company”) (NASDAQ: FLKS) of the August 18, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Flex Pharma, Inc. stock or options between November 6, 2017 and June 12, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/FLKS. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased Flex securities between November 6, 2017 and June 12, 2018 (the “Class Period”). The case, Rumaldo v. Flex Pharma, Inc., No. 18-cv-05493 was filed on June 19, 2018, and has been assigned to Judge Vernon Speede Broderick.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by overstating the viability and approval prospects for its product candidate FLX-787 for the treatment of ALS and CMT.
Specifically, on June 13, 2018, the Company announced that it had plans to halt two ongoing Phase 2 clinical trials for FLX-787, the Company's treatment for amyotrophic lateral sclerosis, citing oral tolerability concerns observed in both studies. Flex further announced that the Company would restructure its organization to reduce costs, including reducing its workforce by approximately 60%, and that Flex's Board was exploring "strategic alternatives, including the potential sale or merger of the company."
On this news, Flex’s share price fell from $4.18 at close on June 12, 2018 to $1.04 on June 13, 2018—a $3.14 or 75.12% drop, causing harm to investors.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Flex Pharma’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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