Robbins LLP: Eagle Pharmaceuticals, Inc. (EGRX) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a class action complaint was filed against Eagle Pharmaceuticals, Inc. (NASDAQGM: EGRX) in the U.S. District Court for the District of New Jersey. The complaint is brought on behalf of all purchasers of Eagle Pharmaceuticals securities between February 23, 2016 and March 18, 2016, for alleged violations of the Securities Exchange Act of 1934 by Eagle Pharmaceuticals’ officers and directors. Eagle Pharmaceuticals, a specialty pharmaceutical company, focuses on developing and commercializing injectable products primarily in the critical care and oncology areas in the United States.
Eagle Pharmaceuticals Accused of Misleading Investors About Its Drug Product
According to the complaint, on May 20, 2015, Eagle Pharmaceuticals submitted its New Drug Application (“NDA”) for its blood-thinning drug, Kangio, to the U.S. Food and Drug Administration (“FDA”). By June 30, 2015, Eagle Pharmaceuticals announced that the NDA had been accepted as filed by the FDA and that FDA action was due by March 19, 2016. At an investor conference on February 23, 2016, the company’s Chief Executive Officer stated that he expected Kangio to be approved and anticipated a launch on March 19, 2016. On February 25, 2016, Eagle Pharmaceuticals issued a press release announcing positive financial results and reiterating its expected launch shortly after March 19.
The complaint alleges that Eagle Pharmaceuticals officials deceived investors by concealing adverse information about the likelihood of Kangio’s NDA approval in order to maintain artificially high prices for its securities. On March 18, 2016, Eagle Pharmaceuticals revealed that it had received a Complete Response Letter from the FDA requesting further characterization of bivalirudin-related substances in Kangio. On this news, Eagle Pharmaceuticals stock fell by $10.18 per share, or nearly 19%, to close at $43.50 per share on March 18, 2016.
Eagle Pharmaceuticals Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.