NEW YORK, Jan. 07, 2021 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Tricida, Inc. (“Tricida” or the “Company”) (NASDAQ: TCDA) in the United States District Court for the Northern District of California on behalf of those who purchased or acquired the securities of Tricida between September 4, 2019 and October 28, 2020, inclusive (the “Class Period”). The lawsuit seeks to recover damages for Tricida investors under the federal securities laws.
The Complaint alleges that Defendants made false and/or misleading statements and failed to disclose to investors that: (i) the Company’s NDA for veverimer was materially deficient; (ii) accordingly, it was foreseeably likely that the FDA would not accept the NDA for veverimer; and (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On July 15, 2020, the Company issued a press release announcing that, on July 14, 2020, the Company received a notification from the FDA, stating that as part of the FDA’s ongoing review of the Company’s NDA for veverimer, “the FDA has identified deficiencies that preclude discussion of labeling and post marketing requirements/commitments at this time.” The Company stated that “[t]he notification does not specify the deficiencies identified by the FDA.” On this news, the Company’s stock price fell $10.56 per share, or 40.31%, to close at $15.64 per share on July 16, 2020.
Then, on October 29, 2020, the Company announced an update on its End-of-Review Type A meeting with the FDA regarding the veverimer NDA, advising investors that the Company “now believes the FDA will also require evidence of veverimer’s effect on CKD progression from a near-term interim analysis of the VALOR-CKD trial for approval under the Accelerated Approval Program and that the FDA is unlikely to rely solely on serum bicarbonate data for determination of efficacy.” Concurrently, the Company disclosed that it “is significantly reducing its headcount from 152 to 59 people and will discuss its commitments with vendors and contract service providers to potentially provide additional financial flexibility.” On this news, the Company’s stock price fell $3.90 per share, or 47.16%, to close at $4.37 per share on October 29, 2020.
Investors who purchased or otherwise acquired shares of Tricida during the Class Period should contact the Firm prior to the March 8, 2021 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish 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.
Please visit our website at http://www.gme-law.com for more information about the firm.