On Monday, August 28, 2023, the Second Circuit Court of Appeals revived certain securities fraud claims previously dismissed in In re Synergy Pharmaceuticals, Inc. Sec. Litig., No. 18-cv-873, 2021 WL 4480625 (E.D.N.Y. Sept. 30, 2021). In a Summary Order, the Second Circuit panel found that investors in bankrupt drugmaker, Synergy Pharmaceuticals, Inc., adequately alleged that a statement regarding Synergy’s access to non-dilutive capital was made with the requisite level of intent. The district court’s judgment was vacated in part and the case was remanded back to the district court for further proceedings consistent with the Second Circuit’s order.
The investors are represented by Faruqi & Faruqi, LLP, as co-lead counsel. A copy of the Second Circuit’s order is linked below.