NEW YORK, Feb. 24, 2018 /PRNewswire/ — Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of Synergy Pharmaceuticals Inc. (“Synergy” or the “Company”) (NASDAQ: SGYP). Investors who purchased Synergy securities between September 5, 2017 and November 14, 2017, inclusive (the “Class Period”), may be affected.
A class action complaint alleging violations of the Securities Exchange Act of 1934 has been filed in the United States District Court for the Eastern District of New York against Synergy and certain executives.
Synergy is a biopharmaceutical company focused on the development and commercialization of therapies to treat gastrointestinal disorders and diseases.
On September 5, 2017, the start of the Class Period, Synergy issued a press release announcing that it had “closed on a $300 million debt financing structured as senior secured loans from CRG LP, a healthcare focused investment firm, and its lender syndicate” (the “CRG Loan”). During the conference call held on September 7, 2017, Synergy’s Chief Financial Officer represented to investors that the CRG Loan was a “non-dilutive financing.”
On November 9, 2017, Synergy filed a Form 10-Q with the SEC and disclosed that the CRG Loan included a “requirement to have a certain minimum balance of cash and cash equivalents on hand as of January 31, 2018, and other borrowing conditions.” During a conference call held the same day, Synergy’s Chief Financial Officer reportedly stated “I cannot comment on specific conditions required to access the additional tranches beyond what’s publicly disclosed. . . .” Following this news, Synergy’s stock price declined by over 8.4% to close at $2.72 per share on November 10, 2017.
On November 13, 2017, the Company announced that it had priced an equity offering of common stock and warrants to raise net proceeds of approximately $52 million. Following this news, Synergy’s stock price declined by about 10.3%, to close at $2.44 per share on November 13, 2017. Synergy’s stock price continued to decline the next trading day by an additional 16.8% to close at $2.03 per share on November 14, 2017.
The complaint alleges that throughout the Class Period, Defendants made false and misleading statements that failed to disclose that the CRG Loan was “subject to various onerous terms and conditions” and that “the terms of the CRG Loan were dilutive to the outstanding equity interest of shareholders.”
If you are a member of the proposed Class, you may move the court no later than April 10, 2018 to serve as a lead plaintiff for the purported class. You need not seek to become a lead plaintiff in order to share in any possible recovery. If you would like to discuss the complaint or our investigation, please contact us by emailing email@example.com or by calling 800-290-1952. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about this Notice, the action, your rights, or your interests, please contact:
Donald R. Hall
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
Fax: (212) 687-7714
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California 94104
Fax: (415) 772-4707
SOURCE Kaplan Fox & Kilsheimer LLP
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