NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized shareholder law firm, announces that a class action lawsuit has been filed in the United States District Court for the Eastern District of Pennsylvania on behalf of investors that purchased Zynerba Pharmaceuticals, Inc. (NASDAQ: ZYNE) securities between March 11, 2019 and September 17, 2019 (the “Class Period”). Investors have until December 23, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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Zynerba is developing Zygel (ZYN002), a transdermal CBD gel, which is presently in clinical trial. In April 2018, Zynerba initiated the Phase 2 of BELIEVE 1 (Open Label Study to Assess the Safety and Efficacy of Zygel Administered as a Transdermal Gel to Children and Adolescents with Developmental and Epileptic Encephalopathy (“DDE”)) clinical trial (“BELIEVE 1 Trial”), a six-month open label multi-dose clinical trial designed to evaluate the efficacy and safety of Zygel in children and adolescents (ages three to seventeen years) with DEE as classified by the International League Against Epilepsy (“ILAE”).
On September 18, 2019, during pre-market hours, Zynerba issued a press release announcing results from the BELIEVE 1 Trial evaluating topical gel Zygel in children and adolescents with DEE (the “September 2019 Press Release”). While Zynerba asserted that Zygel was well-tolerated in the September 2019 Press Release, it also disclosed that, among patients enrolled in the BELIEVE 1 Trial, the rate of treatment emergent adverse events (“TEAEs”) was 96%, the rate of treatment related adverse events (“TRAEs”) was 60%, and there were ten patients who reported serious adverse events (“SAEs”), of which, “two SAEs (lower respiratory tract infection and status epilepticus) were determined to be possibly related to treatment.”
On this news, Zynerba’s stock price fell $2.46 per share, or 21.77%, to close at $8.84 per share on September 18, 2019.
The complaint, filed on October 23, 2019, 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: (i) Zygel was proving unsafe and not well-tolerated in the BELIEVE 1 Trial; (ii) the foregoing created a foreseeable, heightened risk that Zynerba would fail to secure the necessary regulatory approvals for commercializing Zygel for the treatment of DEE in children and adolescents; and (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.
If you purchased Zynerba securities during the Class Period, continue to hold shares purchased before the Class Period, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at email@example.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.