Robbins Arroyo LLP: Cempra, Inc. (CEMP) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Cempra, Inc. (NASDAQGS: CEMP) in the U.S. District Court for the Middle District of North Carolina, Durham Division. The complaint is brought on behalf of all purchasers of Cempra securities between May 1, 2016 and November 1, 2016, for alleged violations of the Securities Exchange Act of 1934 by Cempra’s officers and directors. Cempra, a clinical-stage pharmaceutical company, focuses on developing antibiotics to meet medical needs in the treatment of bacterial infectious diseases in North America.
Cempra Accused of Concealing Safety Risks of Its Lead Product Candidate
According to the complaint, on May 1, 2016, Cempra announced the completion of the company’s New Drug Application (“NDA”) for the company’s lead product candidate, solithromycin, to the U.S. Food and Drug Administration (“FDA”). The NDA press release stated, “Completion of the rolling submission of our first NDAs … represents a major milestone for the company and a significant step toward our goal of developing antibiotics to meet the critical medical needs of patients in the treatment of bacterial infectious diseases.” The company subsequently expressed confidence in the drug’s potential and emphasized the compelling data package it had assembled. On October 27, 2016, Cempra announced in a filing with the U.S. Securities and Exchange Commission that the FDA had accepted the company’s NDA for solithromycin and that the financial information in the filing was accurate and disclosed any material changes to the company’s internal control over financial reporting.
However, the complaint alleges that Cempra officials failed to disclose that solithromycin posed significant safety risks for hepatotoxicity. On November 2, 2016, the FDA reported that, “[a] significant safety signal for hepatotoxicity was observed in the solithromycin development program,” and there was concern for “the high rate of infusion site-related reactions.” On this news, Cempra’s stock fell $11.35 per share, or over 60%, to close at $7.30 per share on November 2, 2016. Cempra subsequently announced that NASDAQ had halted trading of the company’s common stock.
Cempra Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.