The complaint charges Cempra and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Cempra is a clinical-stage biopharmaceutical company that develops antibiotics for the treatment of infectious diseases. Cempra's lead product, solithromycin, is being developed in oral capsule, intravenous and suspension formulations for the treatment of community-acquired bacterial pneumonia ("CABP"), as well as for other indications.
The complaint alleges that throughout the Class Period, defendants violated the federal securities laws by disseminating false and misleading statements to the investing public. Specifically, defendants misleadingly informed investors that solithromycin was not associated with liver toxicity and drug-induced liver injury. As a result of defendants' false and misleading statements, Cempra stock traded at artificially inflated prices during the Class Period, reaching a high of $32.81 per share on November 25, 2015.
Then, on November 2, 2016, the U.S. Food and Drug Administration released a report analyzing Cempra's clinical development program of solithromycin to treat CABP, which highlighted a significant safety signal for hepatotoxicity and drug-induced liver injury. As a result of this news, the price of Cempra stock dropped $11.35 per share to close at $7.30 per share on November 2, 2016, a one-day decline of nearly 61% on volume of 20.7 million shares.
Plaintiff seeks to recover damages on behalf of all purchasers of Cempra common stock during the Class Period (the "Class"). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller is widely recognized as one of the leading law firms advising U.S. and international institutional investors in securities litigation and portfolio monitoring. With 200 lawyers in 10 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history and was ranked first in both total amount recovered for investors and number of securities class action recoveries in ISS's SCAS Top 50 Report for the last two years. Robbins Geller attorneys have shaped the law in the areas of securities litigation and shareholder rights and have recovered tens of billions of dollars on behalf of the Firm's clients. Robbins Geller not only secures recoveries for defrauded investors, it also strives to implement corporate governance reforms, helping to improve the financial markets for investors worldwide. Please visit rgrdlaw.com/cases/cempra/ for more information.
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SOURCE Robbins Geller Rudman & Dowd LLP