SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP announces that a securities class action lawsuit has been filed in the Southern District of California on behalf of purchasers of Gossamer Bio, Inc. (NASDAQ:GOSS) common stock between February 8, 2019 and December 13, 2019 (the “Class Period”) and/or those who acquired Gossamer stock pursuant or traceable to the Company’s February 8, 2019 initial public offering (“IPO”). The case is captioned Kuhne v. Gossamer Bio, Inc., No. 20-cv-00649, and is assigned to Judge Dana M. Sabraw. The Gossamer Bio securities class action lawsuit charges Gossamer, certain of its officers and directors, and the underwriters of its IPO with violations of the Securities Exchange Act of 1934 and/or the Securities Act of 1933.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Gossamer Bio common stock during the Class Period, including those who acquired Gossamer stock pursuant or traceable to the IPO, to seek appointment as lead plaintiff in the Gossamer Bio securities class action lawsuit. A lead plaintiff acts on behalf of all other class members in directing the Gossamer Bio securities class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Gossamer Bio securities class action lawsuit. An investor’s ability to share in any potential future recovery of the Gossamer Bio securities class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Gossamer Bio securities class action lawsuit or have questions concerning your rights regarding the Gossamer Bio securities class action lawsuit, please visit our website by clicking here or contact Brian Cochran at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the Gossamer Bio securities class action lawsuit must be filed with the court no later than June 2, 2020.
Gossamer is a clinical-stage biopharmaceutical company focused on discovering, acquiring, developing, and commercializing therapeutics in the areas of immunology, inflammation, and oncology. The Company’s lead drug, GB001, is an oral antagonist of prostaglandin D2 receptor 2, or DP2, in development for the treatment of moderate-to-severe eosinophilic asthma and other allergic conditions. Gossamer’s GB001 product is in Phase 2 development for asthma and rhinosinusitis.
On or about December 21, 2018, Gossamer filed with the U.S. Securities and Exchange Commission (“SEC”) a Form S-1 Registration Statement in connection with the IPO, which, after several amendments, was declared effective on February 7, 2019. On or about February 8, 2019, Gossamer filed the final version of the Prospectus for the IPO with the SEC, which forms part of the Registration Statement (collectively, the “Offering Documents”). The Prospectus solicited investors for an offering of 17.25 million shares of Gossamer common stock at $16.00 per share for proceeds to the Company of more than $256 million.
The Gossamer Bio securities class action alleges that in the Offering Materials for the IPO, defendants misrepresented, inter alia, that: (1) a separate, 248-patient Phase 2 trial showed that neither GB001 nor asthma treatment montelukast had met the primary endpoint for improvement in asthma symptoms because of “study design and execution issues related to patient selection, including adherence”; and (2) that Novartis, who had a product that would compete against GB001 in the works, had a successful Phase 2 trial that had clinically validated DP2 antagonism.
In addition, the complaint alleges that over the next several months, defendants continued to publicly state that “DP2 antagonism has been clinically validated by Novartis’ oral DP2 antagonist, fevipiprant,” and that its earlier GB001 trial failure was “primarily related to study design and execution issues related to patient selection.” Based on these misrepresentations, Gossamer stock traded at artificially inflated prices during the Class Period, reaching a high of $27.15 per share.
Then on December 16, 2019, Novartis announced that it was terminating the development of its DP2 antagonist for asthma after it failed a pair of Phase 3 clinical trials. Analysts noted that “[w]hen Gossamer raised $276 million in an IPO earlier in , it said Novartis’ fevipiprant phase 2 had clinically validated DP2 antagonism. That statement now looks premature, particularly when viewed in light of the failures of other DP2 drugs.” On this news, the price of Gossamer stock fell from a December 13, 2019 closing price of $25.37 per share to $15.96 per share, a one-day drop of $9.41 per share, or more than 37%. The stock’s price has continued to decline and at the time the complaint was filed was trading at around $10.00 per share, or 37.5% below the IPO price.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations, and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.