NEW YORK, Aug. 29, 2014 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in EDAP TMS SA ("EDAP" or the "Company") (NasdaqGM: EDAP) of the October 3, 2014 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against EDAP and certain executives.
A complaint has been filed in the United Stated District Court of the Southern District of New York on behalf of all persons who purchased EDAP securities between February 1, 2013 and July 30, 2014, inclusive (the "Class Period").
The complaint alleges that the Company and its executives violated federal securities laws with respect to its disclosures concerning its business, operations, and prospects.
Specifically, the action alleges that during the Class Period, Company made false and/or misleading statements and/or failed to disclose that: (i) EDAP exaggerated the efficacy and safety of its Ablatherm trials; (ii) the occurrence of the adverse events in its trials were understated; and (iii) as a result, the Company's statements were materially false and misleading at all relevant times.
On July 28, 2014, FDA staff report stated its concerns about EDAP's adequacy of their test trial methods. The staff report also revealed high rates of adverse events associated with the drug, which the Company had not properly disclosed. As a result of this report, EDAP was downgraded from "Outperform" to "Market Perform" at Northland Securities by equity analyst Suraj Kalia.
On this news, the price of EDAP stock declined by $1.23, or over 25%, to close at $3.65 on July 28, 2014.
On July 30, 2014, EDAP filed a Form 6-K with SEC and issued a press release on its discussion with the U.S. Food and Drug Administration ("FDA") Advisory Committee Meeting on Ablatherm. FDA's Gastroenterology and Urology Devices Panel ("GUDP") voted 3 yes, 5 no with one abstention regarding the safety of the drug, and 8 no with 1 abstention on the question of the risk/benefit ratio of the use of Ablatherm-HIFU device for treatment of prostate cancer.
Following this news, the price of EDAP stock declined by $1.50, or over 44%, to close at $1.92 on July 31, 2014.
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If you invested in EDAP stock or options between February 1, 2013 and July 30, 2014 and would like to discuss your legal rights, visit www.faruqilaw.com/EDAP. 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 EDAP's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Faruqi & Faruqi, LLP is a national law firm which represents investors and individuals in class action litigation. The firm is focused on providing exemplary legal services in complex litigation in the areas of securities, shareholder, antitrust and consumer litigation, throughout all phases of litigation. The firm has an experienced trial team which has achieved significant victories on behalf of the firm's clients. To keep track of the latest securities litigation news, follow us on Twitter at www.twitter.com/MergerActivity or on Facebook at www.facebook.com/FaruqiLaw.
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