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NEW YORK, Oct. 23, 2019 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Zynerba Pharmaceuticals, Inc. (“Zynerba” or the “Company”) (NASDAQ: ZYNE) and certain of its officers. The class action, filed in United States District Court, Eastern District of Pennsylvania, and docketed under 19-cv-04959, is on behalf of a class consisting of investors who purchased or otherwise Zynerba securities between March 11, 2019, and September 17, 2019, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased Zynerba securities between March 11, 2019, and September 17, 2019, both dates inclusive, you have until December 23, 2019, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Zynerba is developing, among other product candidates, Zygel (ZYN002), a transdermal CBD gel, which is in a Phase II clinical trial for treating children and adolescent patients with developmental and epileptic encephalopathies (“DEE”); a Phase II/III clinical trial to treat children and adolescent patients with fragile X syndrome; and a Phase II clinical trial for treating children and adolescent patients with autism spectrum disorder. In April 2018, Zynerba initiated the Phase 2 BELIEVE 1 (Open Label Study to Assess the Safety and Efficacy of Zygel Administered as a Transdermal Gel to Children and Adolescents with Developmental and Epileptic Encephalopathy) clinical trial (“BELIEVE 1 Trial”), a six-month open label multi-dose clinical trial designed to evaluate the efficacy and safety of Zygel in children and adolescents (ages three to seventeen years) with DEE as classified by the International League Against Epilepsy (“ILAE”).
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Zygel was proving unsafe and not well-tolerated in the BELIEVE 1 Trial; (ii) the foregoing created a foreseeable, heightened risk that Zynerba would fail to secure the necessary regulatory approvals for commercializing Zygel for the treatment of DEE in children and adolescents; and (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On September 18, 2019, during pre-market hours, Zynerba issued a press release announcing results from the BELIEVE 1 Trial evaluating topical gel Zygel in children and adolescents with DEE (the “September 2019 Press Release”). While Zynerba asserted that Zygel was well-tolerated in the September 2019 Press Release, it also disclosed that, among patients enrolled in the BELIEVE 1 Trial, the rate of treatment emergent adverse events (“TEAEs”) was 96%, the rate of treatment related adverse events (“TRAEs”) was 60%, and there were ten patients who reported serious adverse events (“SAEs”), of which, “two SAEs (lower respiratory tract infection and status epilepticus) were determined to be possibly related to treatment.”
On this news, Zynerba’s stock price fell $2.46 per share, or 21.77%, to close at $8.84 per share on September 18, 2019.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby