Robbins Arroyo LLP: PixarBio Corporation (PXRB) Misled Shareholders According to a Recently Filed Shareholder Derivative Lawsuit
Robbins Arroyo LLP announces that a shareholder derivative complaint was filed on behalf of PixarBio Corporation (Other OTC: PXRB) in the U.S. District Court for the District of New Jersey. The complaint is brought against certain officers and directors of PixarBio for alleged breaches of fiduciary duties, unjust enrichment, waste of corporate assets, abuse of control, and gross mismanagement. PixarBio, a specialty pharmaceutical/biotechnology company, focuses on the pre-clinical and clinical development of neurological drug delivery systems for post-operative pain.
PixarBio Accused of Engaging in Manipulative and Deceptive Activities
According to the complaint, on October 31, 2016, PixarBio merged with BMP Holdings Inc. and began trading on the over-the counter-markets. On January 23, 2017, the U.S. Securities and Exchange Commission issued an order suspending trading in the securities of PixarBio. The announcement attributed the suspension to manipulative or deceptive activities – possibly in relation to PixarBio’s public statements concerning its offer to takeover InVivo Therapeutics Corporation – and questioned the accuracy of assertions by PixarBio in press releases, third party promotional materials, and the company’s Form S-1 concerning: (1) the company’s business combinations and current shareholders; (2) the identity and qualifications of key shareholders and employees; and (3) the company’s current and prospective development efforts. The complaint notes that PixarBio officials’ misconduct has subjected the company to a securities fraud class action lawsuit, has caused the company to undertake internal investigations, and will cost the company millions of dollars going forward.
PixarBio Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.