Robbins Arroyo LLP: Flex Pharma, Inc. (FLKS) Misled Shareholders According to a Recently Filed Class Action
SAN DIEGO & BOSTON--(BUSINESS WIRE)--Jul 5, 2018--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Flex Pharma, Inc. (NasdaqGM: FLKS) have filed a class action complaint against the company’s officers and directors for alleged violations of the Securities Exchange Act of 1934 between November 6, 2017 and June 12, 2018. Flex Pharma, a biotechnology company, develops and commercializes products for the treatment of muscle cramps, spasms, and spasticity in the United States. Flex’s product candidate, known as FLX-787, is designed to treat amyotrophic lateral sclerosis (“ALS”).
View this information on the law firm’s Shareholder Rights Blog: www.robbinsarroyo.com/flex-pharma-inc
Flex Pharma Accused of Overstating the Approval Prospects for Its ALS Drug
According to the complaint, in August 2017, Flex began its COMMEND trial to evaluate FLX-787 with a focus on treatment for ALS, and in October 2017, initiated its COMMIT trial to evaluate FLX-787 in Charcot-Marie-Tooth patients. Flex subsequently reported encouraging results that the company believed demonstrated the “clear potential of FLX-787 to reduce painful cramps and spasms” in its patients. Flex further stated that positive topline data for FLX-787 showed a statistically significant 27.3% reduction in the frequency of spasms compared with control and that the drug was generally well-tolerated with no drug-related serious adverse events. On June 13, 2018, Flex suddenly revealed that it was stopping the COMMEND and COMMIT trials, citing oral tolerability concerns. Flex further disclosed that it was reducing its workforce by approximately 60% and that its Board is exploring “the potential sale or merger of the company.” On this news, Flex’s share price plunged over 75% to close at $1.04 per share on June 13, 2018.
Flex Pharma Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm’s website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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SOURCE: Robbins Arroyo LLP
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PUB: 07/05/2018 04:02 PM/DISC: 07/05/2018 04:01 PM