NEW YORK, Feb. 9, 2018 /PRNewswire/ — WeissLaw LLP announces that it has filed a class action lawsuit in the United States District Court for the Eastern District of New York, Lee v. Synergy Pharmaceuticals Inc., et al., C.A. No. 18-cv-00873-AMD-CLP, on behalf of persons and entities that purchased Synergy Pharmaceuticals Inc. (“Synergy” or the “Company”) (NASDAQ: SGYP) securities between September 5, 2017 and November 14, 2017, inclusive (the “Class Period”), asserting claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
On September 5, 2017, the Defendants issued a press release announcing that Synergy closed on a “non-dilutive” $300 million loan from CRG Partners III L.P., which would be available to Synergy “when needed” and fund the Company’s operations through 2019. On November 14, 2017, the end of the Class Period, Synergy revealed that terms of the loan agreement, omitted from Defendants’ prior statements regarding the loan, prevented it from accessing $200 million of the loan without conducting a dilutive secondary offering or offerings of shares to raise cash and, as such, the Company was conducting a secondary offering of its shares. Thus, contrary to Defendants’ statements at the beginning of the Class Period, the loan was not available to Synergy “when needed,” would result in dilution of the outstanding shares, and would not be sufficient to fund the Company’s operations through 2019, without dilution. On the news, Synergy’s share price plunged, trading as low as $1.68 per share, thereby injuring Class members.
If you purchased Synergy securities during the Class Period, you may move the Court no later than sixty (60) days from the date of this notice to ask the Court to appoint you as Lead Plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this notice or your rights or interests with respect to these matters, please contact plaintiff’s counsel, Joshua M. Rubin, Esq., of WeissLaw at 888-593-4771, or by e-mail at firstname.lastname@example.org.
SOURCE WeissLaw LLP