SAN DIEGO--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that a purchaser of Gossamer Bio, Inc. (NASDAQ: GOSS) filed a class action complaint against the Company for alleged violations of the Securities Exchange Act of 1934 between February 8, 2019 and December 13, 2019, as well as violations of the Securities Act of 1933 pursuant to its February 2019 initial public offering ("IPO"). Gossamer is a clinical-stage biopharmaceutical company that focuses on developing and commercializing therapeutics. Gossamer's leading product is GB001, a DP2 antagonist drug for the treatment of asthma.
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Gossamer Bio, Inc. (GOSS) Accused of Misleading Shareholders
According to the complaint, on February 8, 2019, Gossamer held its IPO offering approximately 17.25 million shares at $16.00 per share and raising $256 million in proceeds. In Gossamer's IPO offering materials, the Company claimed that GB001 had not met its primary endpoint for improvement in a phase 2 trial due to "study design and execution issues related to patient selection" and assured that Novartis, who had a product like GB001, had a successful phase 2 trial that clinically validated DP2 antagonism. Gossamer maintained these statements throughout the class period, allowing its stock to trade as high as $27.15 per share. However, on December 16, 2019, Novartis announced it was terminating the development of its similar DP2 antagonist drug for asthma after it failed a pair of phase 3 clinical trials. On this news, Gossamer's stock plummeted 37% to close at $15.96 per share. The stock has yet to recover.
Gossamer Bio, Inc. (GOSS) Shareholders Have Legal Options
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