The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Edge Therapeutics, Inc. (NASDAQ: EDGE) who purchased shares between December 29, 2017 and March 27, 2018. The action, which was filed in the United States District Court for the District of New Jersey, alleges that the Company violated federal securities laws.
In particular, the EDGE lawsuit alleges that (1) that Edge Therapeutics lead product candidate EG-1962 would likely fail a futility analysis in connection with the NEWTON 2 study; and, (2) that, as a result of the foregoing, the Company's financial statements and Defendants' statements about Edge's business, operations, and prospects, were materially false and misleading at all relevant times. On March 28, 2018, Edge Therapeutics disclosed “that a pre-specified interim analysis on data from the Day 90 visit of the first 210 subjects randomized and treated in the Phase 3 NEWTON 2 study of EG-1962 demonstrated a low probability of achieving a statistically-significant difference compared to the standard of care in the study’s primary endpoint, if the study is fully enrolled.” As a result, the Data Monitoring Committee “recommended that the study be stopped based on its conclusion that the study has a low probability of meeting its primary endpoint.” Based on the DMC recommendation, Edge Therapeutics decided to discontinue the Phase 3 NEWTON 2 study. Upon this news, shares of Edge Therapeutics fell from a close of $15.59 on March 27, 2018, to a close of $1.31 per share on March 28, 2018.
Shareholders have until June 22, 2018 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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