The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Flex Pharma, Inc. (NASDAQ: FLKS) who purchased shares between November 6, 2017 and June 12, 2018. The action, which was filed in the United States District Court for the Southern District of New York, alleges that the Company violated federal securities laws.
In particular, the FLKS lawsuit alleges that (i) the Company overstated the viability and approval prospects for its product candidate FLX-787 for the treatment of amyotrophic lateral sclerosis and Charcot-Marie-Tooth disease; and (ii) as a result, Flex Pharma's public statements were materially false and misleading at all relevant times. On June 13, 2018, Flex announced that it planned to halt its FLX-787 trials, citing oral tolerability concerns observed in both studies. Flex also said that it will restructure its organization to reduce costs, including reducing its workforce by approximately 60%, and that Flex's Board is exploring "strategic alternatives, including the potential sale or merger of the company." Following this news, Flex stock dropped $3.14 per share, or 75.12%, to close at $1.04 on June 13, 2018.
Shareholders have until August 20, 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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