WILMINGTON, Del., June 16, 2016 (GLOBE NEWSWIRE) -- Rigrodsky & Long, P.A.:
- Do you, or did you, own shares of Chiasma, Inc. (NASDAQ:CHMA)?
- Did you purchase your shares pursuant and/or traceable to the July 15, 2015 Registration Statement and Prospectus, or between July 15, 2015 and April 17, 2016, inclusive?
- Did you lose money in your investment?
Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the District of Massachusetts on behalf of all persons or entities that purchased the common stock of Chiasma, Inc. (“Chiasma” or the “Company”) (NASDAQ:CHMA) pursuant and/or traceable to the July 15, 2015 Registration Statement and Prospectus, or during the period between July 15, 2015 and April 17, 2016, inclusive (the “Class Period”) alleging violations of the Securities Exchange Act of 1933 and the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
If you purchased shares of Chiasma pursuant and/or traceable to the July 15, 2015 Registration Statement and Prospectus, or during the period between July 15, 2015 and April 17, 2016, inclusive, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 2 Righter Parkway, Suite 120, Wilmington, DE 19803 at (888) 969-4242; by e-mail to info@rl-legal.com; or at: http://rigrodskylong.com/investigations/chiasma-inc-chma.
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects. Specifically, the Complaint alleges that the defendants concealed from the investing public that: (1) Chiasma’s Phase 3 clinical trial methodology for Mycapssa, its lead product candidate, was not sufficient to demonstrate efficacy and secure U.S. Food and Drug Administration (“FDA”) approval; (2) Chiasma’s supervision of its suppliers was not sufficient to prevent deficiencies that would delay FDA approval of Mycapssa; and (3) as a result of the foregoing, Chiasma’s public statements were materially false and misleading at all relevant times. As a result of defendants’ alleged false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on April 18, 2015, before the market opened, the Company announced that the FDA had issued a Complete Response Letter regarding its New Drug Application for Mycapssa. Per the press release, the FDA advised Chiasma that the Agency did not believe the Company’s application had provided substantial evidence of efficacy to warrant approval, and advised Chiasma that it would need to conduct another clinical trial in order to overcome this deficiency. Further, the FDA expressed concerns regarding certain aspects of the Company’s single-arm, open-label Phase 3 clinical trial and strongly recommended that the Company conduct a randomized, double-blind and controlled trial that enrolls patients from the United States and be of sufficiently long duration to ensure that control of disease activity is stable at the time point selected for the primary efficacy assessment. In addition, the FDA advised that, during a recent site inspection, certain deficiencies were conveyed to the representative of one of Chiasma’s suppliers that would need to be resolved before approval.
On this news, shares of Chiasma plummeted over 63%, closing at $3.75 per share on April 18, 2016, on heavy trading volume.
If you wish to serve as lead plaintiff, you must move the Court no later than August 8, 2016. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
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