NEW YORK, Sept. 15, 2016 /PRNewswire/ -- WeissLaw LLP announces that a class action has been filed in the United States District Court for the Southern District of New York against Tokai Pharmaceuticals, Inc. ("Tokai" or the "Company") (TKAI) and certain Company officers, for among other things, violation of sections 10(b) and 20(a) of the Securities and Exchange Act of 1934 (the "Exchange Act"). The class action seeks to pursue remedies on behalf of all person or entities who purchased or otherwise acquired shares of Tokai between June 24, 2015 and July 25, 2016 (the "Class Period").
On July 26, 2016, Tokai announced that it will discontinue its AMORS3-SV clinical trial, phase 3 study of the Company's highly anticipated Galeterone drug. On that news, Tokai shares nose-dived from the previous day's closing price of $5.20 to a low of $1.08. The news follows reports of a drug trial plagued with challenges. Among those reports, Seeking Alpha's "What's Wrong With Tokai Pharmaceuticals?" published late last year, revealed numerous structural problems with the trial and predicted the failure of phase 3 of the trial.
The complaint alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose information with regard to Tokai's operations and compliance policies by: (i) failing to inform and/or misrepresent the structural problems of phase 3 of the Galeterone trial to shareholders, which subsequently resulted in the failure of the trial; and (ii) filing materially false and/or misleading financial statements.
If you wish to serve as lead plaintiff, you must move the Court no later than September 30, 2016. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Joshua Rubin of WeissLaw LLP at 888.593.4771, or by e-mail at firstname.lastname@example.org. Any member of the 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.
WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties. We have recovered over a billion dollars for defrauded clients. For more information about the firm, please go to: http://www.weisslawllp.com.
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SOURCE WeissLaw LLP