CV Sciences, Inc. (CVSI) Accused of Failing to Inform Investors of Patent Rejection
According to the complaint against the company’s officers and directors for alleged breaches of fiduciary duties from June 19, 2017 through the present, CV Sciences, Inc. (CVSI) touted that CVSI-007 had a market estimated at “greater than $2 billion,” demonstrating the importance of CVSI-007 to the company’s operations. In 2016, CV Sciences filed a patent application with the U.S. Patent Trademark Office (“USPTO”) for CVSI-007. On December 14, 2017, the USPTO made a final rejection decision on the company’s patent, but CV Sciences never reported that the patent had been rejected and continued to represent that CVSI-007 was patent-protectable. On August 20, 2018, Citron Research reported CV Sciences’ failure to disclose the December 2017 final rejection of the patent. On this news, CV Sciences’ stock plunged over 36% to close at $4.21 per share on August 20, 2018, and has yet to regain its value.
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