SAN FRANCISCO, Feb. 28, 2020 /PRNewswire/ --Hagens Berman urges investors in CymaBay Therapeutics, Inc.(NASDAQ: CBAY) who have suffered significant losses to submit their losses now. The firm is investigating possible securities law violations, and certain investors may have valuable claims.
The investigation concerns the veracity of CymaBay's disclosures concerning the development of its lead product candidate, Seladelpar, for use in treating liver diseases.
On June 11, 2019, the Company announced results from an ongoing 52-week Phase 2b dose-ranging, paired liver biopsy study. The results showed reductions in liver fat were minimal and not significant compared to placebo. Nonetheless, CymaBay's Chief Medical Officer, Dr. Pol Boudes, downplayed these results, stating "[w]hile the reductions in liver fat were minimal, we remain encouraged by the significant improvements in biochemical markers of liver injury that we observed at week 12." This news drove the price of CymaBay shares down $5.04, or about 45%, that day.
On Sept. 17, 2019, CymaBay announced it and Dr. Boudes "mutually agreed" he would cease to be an officer and employee of the Company.
Then, on Nov. 25, 2019, the Company announced it was halting the development of Seladelpar "based on initial histological findings observed in the Phase 2b study of seladelpar in NASH." This news drove the price of CymaBay shares down $4.00, or about 72%, that day.
On Dec. 19, 2019, CymaBay announced it will terminate 60% of its employees as it explores strategic alternatives, sending the price of its shares sharply lower again. A month later, nearly half of the Company's Board abruptly resigned.
"We're focused on investors' losses and whether CymaBay intentionally misled investors about the prospects for Seladelpar," said Reed Kathrein, the Hagens Berman partner leading the investigation.
Whistleblowers:Persons with non-public information regarding CymaBay should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
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