Faruqi & Faruqi, LLP’s national practice focuses on complex civil litigation. The firm practices in the areas of Securities, Merger & Transactional, Shareholder Derivative, Antitrust, Consumer Class Action, and Wage & Hour litigation.
Friday, January 22, 2016
Faruqi & Faruqi Alert: Esperion Therapeutics, Inc.
The lawsuit has been filed in the U.S. District Court for the Eastern District of Michigan on behalf of all those who purchased Esperion common stock between August 18, 2015 and September 28, 2015 (the “Class Period”). The case, Dougherty v. Esperion Therapeutics, Inc. et al, No. 2:16-cv-10089 was filed on January 12, 2016, and has been assigned to Judge Arthur J. Tarnow.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by issuing materially false and misleading statements in connection with the Company’s future prospects for their lead drug candidate ETC-1002, a drug designed to lower LDL-cholesterol levels. The FDA had encouraged Esperion to initiate a cardiovascular outcomes trial (“CVOT”) and that completion of a CVOT could be necessary prior to approval of ETC-1002.
On August 17, 2015, Esperion stated that the FDA had informed it that the Company did not have to complete a CVOT to gain approval of ETC-1002. However, in an Esperion news release that was released after market close on September 28, 2015, it was revealed that the FDA had encouraged the Company to initiate a CVOT to obtain approval.
On September 28, 2015, Esperion’s stock closed at $35.09 per share. As a result of the news release, the Company’s share price fell $16.76 per share the next day to close at $18.33 per share, a 47.7% decrease in share price.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.