Robbins Arroyo LLP: CorMedix, Inc. (CRMD) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a federal securities fraud class action complaint was filed in the U.S. District Court for the District of New Jersey. The complaint alleges that officers and directors of CorMedix, Inc. (NYSE MKT: CRMD) violated the Securities Exchange Act of 1934 between March 12, 2011, and June 29, 2015, by making materially false and misleading statements about CorMedix’s business prospects. CorMedix, a pharmaceutical company, licenses, develops, and commercializes therapeutic products for the prevention and treatment of cardiac, renal, and infectious diseases. The company markets Neutrolin, a catheter lock solution for the prevention of catheter related bloodstream infections.
CorMedix Overstates its Product’s Effectiveness
According to the complaint, CorMedix’s announcements during the class period regarding its imminent Phase 3 trials for Neutrolin were materially false and misleading. The complaint alleges that CorMedix overstated Neutrolin’s effectiveness when the drug in fact offered no benefit compared to current industry protocols. CorMedix also overstated the cost effectiveness of Neutrolin compared to currently established medical protocols. The complaint further alleges that CorMedix stock achieved an unsustainable valuation by using paid stock promoters, and CorMedix insiders enriched themselves by selling stock at inflated prices.
On June 29, 2015, an article published on SeekingAlpha.com alleged that personnel involved in the formation of CorMedix had faced prior accusations of fraud. Additionally, the report alleged that CorMedix claimed to provide a solution to infections from catheters, when in fact countless, effective solutions were already in use. The article further stated that Neutrolin’s performance in clinical trials was vastly overstated and the company engaged stock promoters to inflate its share price. On this news, CorMedix shares fell $0.81, or over 16.6%, to close at $4.05 on June 29, 2015.
CorMedix 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.