NEW YORK, May 11, 2015 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of all persons or entities that purchased the securities of Ampio Pharmaceuticals, Inc. (“Ampio” or the “Company”) (NYSE MKT:AMPE) between January 13, 2014 and August 21, 2014, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
Ampio Pharmaceuticals, Inc., a biopharmaceutical company, focuses on developing therapies for the treatment of prevalent inflammatory conditions in the United States. The company states it is developing compounds that decrease inflammation.
According to the Complaint, on August 21, 2014, the Company issued a press release announcing a delay in the data analysis of the STEP Study due to the discovery by the independent Clinical Research Organization ("CRO") that the study drugs were, during shipment to the clinical sites, exposed to lower temperatures than permitted by the drug specifications. Then, on August 22, 2014, the blog Buyerstrike issued a report of Ampio, which asserted a number of red flags with the STEP Study.
Shares in Ampio dropped over 35% over the following days, closing at $4.84 per share on August 22, 2014, on heavy trading volume.
According to the Complaint, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the clinical research organization conducting the STEP Study lacked independence; (2) the trial drug supply for the STEP Study was shipped to clinical sites at lower temperatures than permitted by the specifications of the drug; and (3) as a result of the foregoing, the Company’s public statements were materially false and misleading and caused the stock to trade at artificially high prices.
If you wish to serve as lead plaintiff, you must move the Court no later than July 7, 2015. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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