Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Tokai Pharmaceuticals, Inc.
Oklahoma City, OK (August 3, 2016) – On August 1, 2016, a securities class action lawsuit was filed in the United States District Court for the Southern District of New York against Tokai Pharmaceuticals, Inc. (NASDAQ: TKAI). 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 June 24, 2015 through July 25, 2016. More specifically, this litigation was filed because the company filed to disclose that: (1) there were significant structural problems with the trial design for Tokai Pharmaceuticals’ pivotal Phase 3 Galeterone study, ARMOR3-SV; (2) in turn, ARMOR3-SV was unlikely to succeed in meeting its primary endpoint; (3) consequently, commercialization of Galeterone was less likely and/or imminent than Tokai Pharmaceuticals had led investors to believe; and (4) as a result, defendants’ statements about Tokai Pharmaceuticals’ business and operations were false and misleading and/or lacked a reasonable basis. When the true details entered the market, the lawsuit claims that investors suffered damages.
On July 26, 2016, the Company announced it would "discontinue the ARMOR3-SV clinical trial, our pivotal Phase 3 study" of Galeterone. Directly following this news, Tokai stock declined $4.10 per share to close at $1.10 on July 26, 2016.
Plaintiff seeks to recover damages on behalf of all Tokai Pharmaceuticals, 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 30, 2016 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 Wed, August 3, 2016
by Robin Hester filed under