Robbins Umeda LLP Announces an Investigation of NeurogesX, Inc
Robbins Umeda LLP is investigating possible breaches of fiduciary duty and other violations of the law by certain officers and directors at NeurogesX, Inc. (NASDAQ: NGSX). Concerned shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Gregory E. Del Gaizo at (800) 350-6003.
Robbins Umeda LLP is investigating whether officers and directors of NeurogesX breached their fiduciary duties to shareholders and the company by causing the company to issue improper statements related to NeurogesX’s business and operations. In particular, the company failed to disclose adverse facts concerning the employment of Dr. Jeffrey K. Tobias, the company’s former Chief Medical Officer and Executive Vice President of Research and Development. Tobias oversaw all the research and development for the drugs in NeurogesX’s portfolio, and therefore was a crucial officer for NeurogesX. Despite Tobias’s importance to NeurogesX, representatives of the company failed to disclose and actively concealed the fact that Tobias was seeking other employment.
As a result of these actions, NeurogesX’s stock traded at artificially high prices. On September 27, 2011, the company announced Tobias’ resignation. Upon this announcement, NeurogesX stock value declined almost 40%. By October 3, 2011, the company had lost over half of its market value.
Robbins Umeda LLP highlights that NeurogesX shareholders have the option to file a shareholder derivative action to hold those officers and directors accountable for damaging the company. Remedies commonly sought in derivative actions include corporate governance reforms designed to prevent future misconduct, removal of officers or directors whose misconduct injured the corporation, and monetary payments in the form of damages and disgorgement of ill-gotten gains.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.