Levi & Korsinsky announces the commencement of a class action lawsuit in the USDC for the District of Massachusetts on behalf of shareholders of Chiasma, Inc. (NASDAQ: CHMA) who purchased shares between July 15, 2015 and April 17, 2016.
The complaint alleges that, among other allegations, defendants made false and/or misleading statements and/or failed to disclose that (i) Chiasma’s Phase 3 clinical trial methodology for Mycapssa was not sufficient to demonstrate efficacy and secure approval by the U.S. Food and Drug Administration (“FDA”); (ii) Chiasma’s supervision of its suppliers was not sufficient to prevent deficiencies that would delay FDA approval of Mycapssa; and (iii) as a result of the foregoing, Chiasma’s public statements were materially false and misleading at all relevant times. On April 15, 2016, the Company announced the receipt of a Complete Response Letter from the FDA, indicating that Chiasma’s New Drug Application for Mycapssa was not yet ready for approval. Following a review of the Letter, the Company issued a release on April 18, 2016, clarifying the FDA’s concerns, noting that the FDA recommended Chiasma “conduct a randomized, double-blind and controlled trial…of sufficiently long duration…”
If you suffered a loss in Chiasma you have until August 8, 2016 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff.
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