Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in Flex Pharma (NASDAQ:FLKS) in connection to alleged violations of securities laws by FLKS. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Flex Pharma between November 6, 2017 and June 12, 2018.
The class action complaint specifically alleges that during the period in question, FLKS might have provided false and/or misleading material information, and/or failed to disclose adverse material information to the public, chiefly: that the company made overstatements regarding the viability and approval prospects of FLX-787, its product candidate for ALS and CMT treatment; and that consequently the company’s statements to the public during the relevant period were false and misleading. When the company announced, on June 13, 2018, that it intended to cease two separate trials of FLX-787, as a result of tolerability concerns, and announced additionally that it would undergo restructuring to cut costs, as well as its board’s consideration of a potential sale or merger, the company’s stock declined $3.14/share in value, or 75.12%, to a close of $1.04/share on that day.
According to the company’s website, Flex Pharma is a biotechnology company engaged in the development of “innovative and proprietary treatments for muscle cramps, spasms and spasticity associated with the severe neurological diseases of ALS, MS and peripheral neuropathies such as Charcot-Marie-Tooth.” It is headquartered in Boston, Massachusetts and trades on the Nasdaq exchange under the symbol FLKS.