Faruqi and Faruqi Clients Object to Synergy Pharmaceuticals’ Bankruptcy Plan on Behalf of Putative Shareholder Class  

On February 21, 2019, co-lead plaintiffs of a putative Synergy Pharmaceuticals shareholder class objected to Synergy Pharmaceuticals’ Chapter 11 Bankruptcy Plan.  The objection was made before Judge James L. Garrity in the United States District Court for the Southern District of New York.  It states, inter alia, that the Plan would improperly release claims by shareholders against third parties by requiring the shareholders to actively opt-out of the releases to preserve their right to sue.

Faruqi and Faruqi was appointed co-lead counsel for a putative class of Synergy Pharmaceuticals shareholders by Judge Ann M. Donnelly of the Eastern District of New York on June 22, 2018.  Co-lead plaintiffs filed a consolidated amended complaint on August 31, 2018 which alleges that Synergy Pharmaceuticals made false and/or misleading statements about the side effect profile of its lead drug candidate (Trulance) and the dilutive terms of a private equity loan.  

See Rich Archer, Synergy Pharma Faces Pushback Over Ch. 11 Plan Releases, Law360 (Feb. 22, 2019), available at here.

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Faruqi & Faruqi, LLP focuses on complex civil litigation, including securities, antitrust, wage and hour, personal injury and consumer class actions as well as shareholder derivative and merger and transactional litigation. The firm is headquartered in New York, and maintains offices in California, Delaware, Georgia and Pennsylvania.

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About Dillon Hagius

Dillon Hagius's practice is focused on securities litigation. Dillon is an associate in the firm's New York office.

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