The lawsuit focuses on whether the defendants violated federal securities laws by making false and/or misleading statements and/or failing to disclose in its Registration Statement filed in connection with the IPO that: (1) KemPharm constructed a deficient study in connection with its most advanced drug candidate's, Apadaz, abuse-deterrent properties; and (2) as a result, Apadaz would not be labeled as an "abuse-deterrent" product by the Federal Drug Administration (the "FDA").
Specifically, after the market closed on May 5, 2016, the Company announced that the Anesthetic and Analgesic Drug Products Advisory Committee and the Drug Safety and Risk Management Advisory Committee of the FDA had reviewed and voted against inclusion of abuse deterrent labeling for Apadaz.
On this news, KemPharm's share price fell from $15.67 per share on May 5, 2016 to a closing price of $6.91 on May 6, 2016 —a $8.76 or a 55.9% drop.
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If you invested in KemPharm stock and would like to discuss your legal rights, visit www.faruqilaw.com/KMPH. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding KemPharm's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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