BOSTON, March 02, 2020 (GLOBE NEWSWIRE) -- National securities litigation firm Block & Leviton (www.blockesq.com) is investigating potential claims against CymaBay Therapeutics, Inc. (NASDAQ: CBAY) and certain of its officers for securities fraud. Investors who have suffered losses are encouraged to contact the firm for a free consultation.
The investigation concerns whether CymaBay's misled investors regarding the development of Seladelpar, a drug product the company is developing for potential treatment of liver diseases.
On June 11, 2019, the Company announced results from its testing that showed that Seladelpar failed to reduce liver fat significantly compared to a placebo. 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.” News of the disappointing test results shook the market, with CymaBay common stock plunging $5.04, or about 45%, that day. On Sept. 17, 2019, CymaBay announced that it was "mutually agreed" that Dr. Boudes would leave the company.
Then, on Nov. 25, 2019, the Company announced it was halting the development of Seladelpar "based on initial findings observed in a Phase 2b study of the drug.” This news drove the price of CymaBay shares down $4.00, or about 72%, that day.
On Dec. 19, 2019, CymaBay announced the termination of 60% of its workforce as it explores strategic alternatives. A month later, nearly half of the Company's Board abruptly resigned.
"We are concerned that CymaBay may have intentionally misled investors about the prospects for Seladelpar," said Mark Delaney, the Block & Leviton attorney leading the investigation.
If you have purchased or acquired CymaBay securities, and have questions about your legal rights, or possess information relevant to this matter, you are encouraged to contact attorney Mark Delaney directly at (617) 398-5600, by email at mdelaney@blockesq.com, or by visiting https://shareholder.law/cases/?case=cbay.
Block & Leviton LLP is a firm dedicated to representing investor and maintaining the integrity of the country’s financial markets. The firm represents many of the nation's largest institutional investors and individual investors in securities litigation throughout the United States. Its lawyers have recovered billions of dollars for its clients.
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CONTACT:
BLOCK & LEVITON LLP
Mark Delaney
(617) 398-5600 phone
260 Franklin Street, Suite 1860
Boston, MA 02110
mark@blockesq.com
SOURCE Block & Leviton LLP