Lawsuit for Investors in shares of Menlo Therapeutics Inc. (NASDAQ: MNLO) announced by Shareholders Foundation
SAN DIEGO, CA, December 17, 2018 (Newswire.com) - The Shareholders Foundation, Inc. announces that a lawsuit was filed for certain investors in shares of Menlo Therapeutics Inc. (NASDAQ: MNLO) over alleged securities laws violations by PPDAI Group Inc. in connection with the Company's Initial Public Offering closed on January 29, 2018.
Investors, who purchased shares of Menlo Therapeutics Inc. (NASDAQ: MNLO), have certain options and should contact the Shareholders Foundation at [email protected] or call +1(858) 779 - 1554.
In January 2018, Menlo Therapeutics Inc. (NASDAQ: MNLO) completed an initial public offering ("IPO"), selling over 8 million shares of common stock at $17.00 per share, for gross proceeds of $136.9 million.
In April 2018, Menlo revealed that the data it collected before the IPO did not meet the efficacy endpoints and its drug was therefore not effective.
Shares of Menlo Therapeutics Inc. (NASDAQ: MNLO) declined to as low as $5.23 per share in early December 2018.
The plaintiff alleges that the registration statement filed in connection with the company's IPO contained untrue statements of material facts and omitted to state material facts both required by governing regulations and necessary to make the statements made not misleading.
The plaintiff claims that in its registration statement, Menlo Therapeutics Inc. stated that if the results of its Phase 2 clinical trials for the treatment of pruritus are promising, the company would "rapidly advance into Phase 3 clinical trials" and would use the net proceeds from the IPO to fund such trials. However, the plaintiff alleges that, well before the IPO, data for the primary outcome measure of the Phase 2 clinical trial had already exposed serlopitant as ineffective and having little or no prospect of Phase 3 clinical trials or approval by the U.S. Federal Drug Administration.
The plaintiff seeks to recover losses for certain investors who purchased Menlo Therapeutics Inc. (NASDAQ: MNLO) shares.
Those who purchased Menlo Therapeutics Inc. (NASDAQ: MNLO) shares should contact the Shareholders Foundation, Inc.
CONTACT:
Shareholders Foundation, Inc.
Michael Daniels
+1 (858) 779-1554
[email protected]
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. Any referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is only provided as a public service. It is not intended as legal advice and should not be relied upon.
SOURCE: Shareholders Foundation, Inc.
Source: Shareholders Foundation, Inc.
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