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Oklahoma City, OK (June 26, 2018) – On June 19, 2018, a securities class action lawsuit was filed in the United States District Court for the Southern District of New York against Flex Pharma, Inc. (NASDAQ: FLKS). 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 November 6, 2017 through June 12, 2018. More specifically, this litigation was filed because the Company made false and misleading statements to the market throughout the class period. Flex Pharma was overly optimistic regarding the approval chance and viability of FLX-787, its potential product for the treatment of ALS and CMT. This resulted in the Company making materially false and misleading public statements.
On June 13, 2018, Flex announced that it planned to halt its FLX-787 trials, citing oral tolerability concerns observed in both studies. Flex also said that it will restructure its organization to reduce costs, including reducing its workforce by approximately 60%, and that Flex’s Board is exploring “strategic alternatives, including the potential sale or merger of the company.” Following this news, Flex stock dropped $3.14 per share, to close at $1.04 on June 13, 2018.
Plaintiff seeks to recover damages on behalf of all Flex Pharma, 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 Monday, August 20, 2018 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.