NEW YORK, Sept. 14, 2018 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against CV Sciences, Inc. (“CV Sciences” or the “Company”) (OTCMKTS: CVSI) and certain of its officers. The class action, filed in United States District Court, District of Nevada, and index under 18-cv-01709, is on behalf of a class consisting of all persons other than Defendants who purchased or otherwise acquired CV Sciences securities between June 19, 2017 and August 20, 2018, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against CV Sciences and certain of its top officials.
If you are a shareholder who purchased CV Sciences securities between July 19, 2017, and August 20, 2018, both dates inclusive, you have until October 23, 2018, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at email@example.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
CV Sciences purports to operate as a life sciences company. It represents that it has two business divisions: Specialty Pharmaceuticals and Consumer Products. Its Specialty Pharmaceuticals division develops “synthetically-formulated cannabidiol-based medicine,” while the Consumer Products division “delivers botanical-based cannabidiol products that enhance quality of life.” CV Sciences was founded in 2010 and is headquartered in Las Vegas, Nevada. Its common stock trades over-the-counter (“OTC”) under the ticker symbol “CVSI”.
The Company’s chief pharmaceutical product is identified as CVSI-007, a chewing gum product that combines cannabidiol and nicotine in treatment of smokeless tobacco use and addiction. The Company described CVSI-007 to the public as its “lead drug candidate” with a market that has been estimated at “greater than $2 billion,” providing an important growth channel for CV Sciences.
On May 16, 2016, CV Sciences filed a patent application with the US Patent Trademark Office (“USPTO”) for CVSI-007, titled “Pharmaceutical Formulations Containing Cannabidiol and Nicotine For Treating Smokeless Tobacco Addiction.” On February 7, 2017, CV Sciences filed a continuing patent application under the same title, Patent #15/426,617 (the “Patent”).
On April 27, 2017, the USPTO made a non-final rejection decision on the Company’s Patent and mailed CV Sciences a letter indicating the non-final rejection status of its Patent on June 6, 2017. Then, On December 14, 2017, the USPTO made a final rejection decision on the Company’s Patent and mailed CV Sciences a letter indicating the final rejection status of its Patent on December 20, 2017.
During the Class Period, CV Sciences never disclosed the foregoing material information concerning the Patent to the public, either through its several U.S. Securities and Exchange Commission disclosures or in any other forum.
On August 20, 2018, Citron Research (“Citron”) reported, via Twitter, the Defendants’ failure to disclose either the April 27, 2017, non-final rejection or the December 14, 2017, final rejection of the Patent application for CVSI-007.
Following publication of the Citron report, CV Sciences’ stock price fell $2.40 per share, or 36.31%, to close at $4.21 per share on August 20, 2018.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com