NEW YORK, Jan. 12, 2016 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Esperion Therapeutics, Inc. (“Esperion” or the “Company”) (Nasdaq:ESPR) in the United District Court for the Eastern District of Michigan on behalf of a class consisting of all persons or entities who purchased securities between August 18, 2015 and September 28, 2015, inclusive (the “Class Period”). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).
The Complaint alleges that Defendants issued false and misleading statements regarding the Company’s business and prospects, including that there was no clear path to approval for ETC-1002, and that the FDA had encouraged the Company to initiate a cardiovascular outcomes trial (“CVOT”) and that completion of a CVOT could be necessary prior to approval of ETC-1002. As a result of these false statements and/or omissions, the Company’s stock traded at artificially inflated prices during the Class Period, reaching as high as $82 per share in intra-day trading.
On August 17, 2015, the Company reported material events from an early August 2015 meeting with the FDA regarding the next phase of the approval process for ETC-1002. The Company stated that during the meeting it was informed by the FDA that the Company would not have to complete a CVOT to gain approval of ETC-1002. The Company also informed investors that it had a “‘clear regulatory path forward for development and approval of ETC-1002.’"
On September 28, 2015, the Complaint alleges that Esperion reversed course about the early August 2015 FDA meeting – stating in a September 28, 2015 news release that the FDA had actually “encouraged the Company to initiate a cardiovascular outcomes trial promptly” and it may be necessary to have a completed CVOT prior to approval. When the market closed on September 28, 2015, the Company stock was trading at $35.09 per share. After the market closed, the Company revealed the truth and the next day the Company’s stock opened at $26.00 per share. By the time the market digested the truth on September 29, 2015, the price of Esperion stock had fallen almost 50% from its previous close to $18.33 per share on unusually high volume.
If you wish to serve as lead plaintiff, you must move the Court no later than March 14, 2016. 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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