Synergy Pharmaceuticals Inc Securities Litigation

If you purchased a significant amount of shares of Synergy Pharmaceuticals, Inc. (NASDAQ: SGYP) between November, 10th 2016 and November, 14th 2017, and/or if you purchased Synergy Pharmaceuticals, Inc. (NASDAQ: SGYP) shares in November 2016 or earlier and currently hold any of those shares, you have certain options. Investors should register for updates.

 

Lawsuit Overview

Defendant:Synergy Pharmaceuticals, Inc.
Date Filed:February, 8th 2018
Sector:Health Care
Industry:Major Pharmaceuticals
Class Start Date:November, 10th 2016
Class End Date:November, 14th 2017

According to the Complaint, Synergy is a biopharmaceutical company focused on development and commercialization of therapies to treat Gastro-Intestinal disorders and diseases.

According to the law firm press release, on September 5, 2017, the Defendants issued a press release announcing that Synergy closed on a "non-dilutive" $300 million loan from CRG Partners III L.P., which would be available to Synergy "when needed" and fund the Company's operations through 2019. On November 14, 2017, the end of the Class Period, Synergy revealed that terms of the loan agreement, omitted from Defendants' prior statements regarding the loan, prevented it from accessing $200 million of the loan without conducting a dilutive secondary offering or offerings of shares to raise cash and, as such, the Company was conducting a secondary offering of its shares. Thus, contrary to Defendants' statements at the beginning of the Class Period, the loan was not available to Synergy "when needed," would result in dilution of the outstanding shares, and would not be sufficient to fund the Company's operations through 2019, without dilution. On the news, Synergy's share price plunged, trading as low as $1.68 per share, thereby injuring Class members.

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First Identified Complaint

David Lee, et al. v. Synergy Pharmaceuticals Inc, et al.

Date Filed:February, 8th 2018
Class Period Start:September, 5th 2017
Class Period End:November, 14th 2017
First Identified Complaint Filings
#Document TitleFiling Date