Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses In Excess Of $100,000 Investing In Tokai Pharmaceuticals, Inc. To Contact The Firm Before Lead Plaintiff Deadline
Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Tokai Pharmaceuticals, Inc. (“Tokai” or the “Company”) (NASDAQ: TKAI) of the September 30, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased Tokai stock or options between June 24, 2015 and July 25, 2016 (the “Class Period”). The case, Doshi v. Tokai Pharmaceuticals, Inc. et al, No. 1:16-cv-06106 was filed on August 1, 2016, and has been assigned to Judge Lorna G. Schofield.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose there were significant structural problems with the trial design for Tokai Pharmaceuticals’ pivotal Phase 3 galeterone study, ARMOR3-SV.
Specifically, on November 2, 2015, Richard Pearson published an article on the investment website Seeking Alpha, entitled “What’s Wrong With Tokai Pharmaceuticals?” (the “Pearson Report”). The Pearson Report described structural problems with the design of the Company’s ARMOR3-SV trial. Then on July 26, 2016, Tokai announced plans “to discontinue the ARMOR3-SV clinical trial, our pivotal Phase 3 study” of galeterone stating that ARMOR3-SV was unlikely to succeed in meeting its primary endpoint.
On this news, Tokai’s share price fell from $5.20 per share on July 25, 2016 to a closing price of $1.10 on July 26, 2016 —a $4.10 or a 78.85% drop.
Finally, after market hours on July 29, 2016, Tokai issued a press release announcing that it would reduce its workforce by approximately 60 percent by the end of the third quarter of 2016.
On this news, Tokai’s share price fell from $1.26 per share on July 29, 2016 to a closing price of $1.13 on August 1, 2016 —a $0.13 or a 10.32% drop.
If you invested in Tokai stock or options between June 24, 2015 and July 25, 2016 and would like to discuss your legal rights, please fill out the form below. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding Tokai’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Please tell us about yourself by completing the form and we will provide you with additional
information on how to join the Class Action at no cost to you.
* The submission of this form does not create an attorney-client relationship.
Richard W. Gonnello
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330
If you have information regarding this case that you would like to make available, please click here to contact us about our investigation.