Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against CorMedix, Inc.
Oklahoma City, OK (July 9, 2015) – On July 7, 2015, a securities class action lawsuit was filed in the United States District Court for the District of New Jersey against CorMedix, Inc. (NYSE MKT: CRMD). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is March 12, 2011 through June 29, 2015. More specifically, this litigation was filed because defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company’s announcements regarding its partnership discussions and imminent Phase 3 trials for its sole product, Neutrolin, were materially false and misleading; (2) clinical studies touted by the Company were misleading and overstated Neutrolin’s effectiveness when in fact Neutrolin offers no benefit compared to current industry protocols; (3) the Company overstated the cost effectiveness of Neutrolin compared to currently established medical protocols; (4) the Company’s market claims for Neutrolin were overstated; (5) the Company stock achieved an unsustainable valuation by using paid stock promoters, yet failed to disclose the use of such promoters in its regulatory filings pursuant to Section 17(b) of the Securities Act of 1933; (6) the Company insiders enriched themselves at the expense of shareholders by selling stock at inflated prices; and (7) as a result of the foregoing, the Company’s public statements were materially false and misleading at all relevant times.
On June 29, 2015, an article by The Pump Stopper published on Seeking Alpha alleged that: 1) personnel involved in the formation of CorMedix had faced prior accusations of fraud; 2) Neutrolin’s performance in clinical trials was vastly overstated; and 3) the Company had engaged stock promoters in order to inflate the Company’s share price. As a result of this news, the Company’s shares declined to close at $4.05 on June 29, 2015.
Plaintiff seeks to recover damages on behalf of all CorMedix, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Friday, September 4, 2015 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to firstname.lastname@example.org, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.
Posted on Thu, July 9, 2015
by Robin Hester filed under