NEW YORK, May 20, 2020 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Gossamer Bio, Inc. ("Gossamer" or the "Company") of the June 2, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Gossamer stock or options between February 8, 2019 and December 13, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/GOSS. There is no cost or obligation to you.
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 [email protected].
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Attn: Richard Gonnello, Esq.
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The lawsuit has been filed in the U.S. District Court for the Southern District of California on behalf of all those who purchased Gossamer common stock between February 8, 2019 and December 13, 2019 (the "Class Period"). The case, Kuhne v. Gossamer Bio, Inc. et al, No. 20-cv-00649 was filed on April 3, 2020, and has been assigned to Judge Dana M. Sabraw.
In the materials accompanying the IPO and throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and compliance policies. Specifically, Defendants misrepresented and/or failed to disclose to investors: (1) the reasons for Gossamer's GB001 trial failures; (2) the purported clinical validation of Novartis'oral DP2 antagonist; and (3) as a result of the foregoing, Defendants' public statements were materially false and misleading at all relevant times.
In October 2019, Novartis announced that its fevipiprant product had failed to improve long function in two Phase 3 trials, as measured by FEV1, over placebo. Then, on December 16, 2019, Novartis announced that it was terminating the development of its DP2 antagonist fevipiprant for asthma after it failed another pair of Phase 3 clinical trials. Analysts noted that, "[f]or Gossamer, detailed data from fevipiprant would likely weight heavily on GB001, its lead drug in the same class.
On this news, Gossamer's share price fell from $25.37 per share on December 13, 2019 to a closing price of $15.96 on December 16, 2019: a $9.41 or a 37.10% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative 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. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Gossamer's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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