NEW YORK, March 10, 2017 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against SCYNEXIS, Inc. (“Scynexis” or the “Company”) (NASDAQ:SCYX) in the United States District Court for the District of New Jersey on behalf of a class consisting of investors who purchased or otherwise acquired Scynexis securities: (1) pursuant and/or traceable to the Company’s false and misleading Registration Statement and Prospectus, issued in connection with the Company’s initial public offering on or about May 2, 2014 (the “IPO” or the “Offering”); and/or (2) on the open market between May 2, 2014 and March 2, 2017 (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the Securities Act of 1933 (the “Securities Act”) and the Securities Exchange Act of 1934 (the “Exchange Act”).
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company’s lead product SCY-078 entailed substantial undisclosed health and safety risks; (2) consequently, the Company had overstated the drug’s approval prospects and/or commercial viability; and (3) as a result of the foregoing, the Company’s public statements were materially false and misleading at all relevant times.
On March 2, 2017, post-market, the Company announced that the U.S. Food and Drug Administration (“FDA”) has placed a clinical hold on clinical trials for the intravenous formulation of the Company’s lead product candidate SCY-078, “until the FDA completes a review of all available pre-clinical and clinical data.” The Company advised investors that “[t]he clinical hold decision was issued by the FDA following a review of three mild-to-moderate thrombotic events in healthy volunteers receiving the IV formulation of SCY-078 at the highest doses and highest concentrations in a Phase 1 study.” On this news, the Company’s share price fell as much as 20.49%, during intraday trading on March 3, 2017.
If you wish to serve as lead plaintiff, you must move the Court no later than May 8, 2017. 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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