NEW YORK, Aug. 17, 2016 (GLOBE NEWSWIRE) — Attorney Advertising — Bronstein, Gewirtz & Grossman, LLC, reminds investors of class action against Tokai Pharmaceuticals, Inc. (“Tokai” or the “Company”) (NASDAQ:TKAI). The class is on behalf of a class consisting of all persons or entities who purchased Tokai from June 24, 2015 through July 25, 2016, inclusive (the “Class Period”).
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).
Tokai Pharmaceuticals is a company focused on developing and commercializing therapies for prostate cancer and other hormonally-driven diseases. Galeterone, Tokai’s lead drug candidate, is an oral small molecule that was used in various clinical trials for the treatment of patients with metastatic castration-resistant prostate cancer.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding Tokai’s business, operational and compliance policies. Particularly, Defendants made false and/or misleading statements and/or failed to disclose that: (1) there were noteworthy structural problems with ARMOR3-SV, the trial design for Tokai’s pivotal Phase 3 Galeterone study, (2) accordingly, ARMOR3-SV would probably not meet its primary endpoint; (3) therefore, the likelihood of Galeterone’s commercialization was not as probable as Tokai had told investors; and (4) consequently, Tokai’s financial statements, and Defendants’ statements regarding Tokai’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On November 2, 2015, Seeking Alpha published a report by Richard Pearson, “What’s Wrong With Tokai Pharmaceuticals?”. The article described structural problems with the design of the Company’s ARMOR3-SV trial. Following this news, Tokai stock dropped $0.07 per share, or 0.63%, to close at $10.98 on November 2, 2015.
Then, on July 26, 2016, Tokai said it would “discontinue the ARMOR3-SV clinical trial, our pivotal Phase 3 study” of Galeterone. Directly following this news, Tokai stock dropped $4.10 per share, or roughly 79%, to close at $1.10 on July 26, 2016.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint and join the action please visit the firm’s site: http://www.bgandg.com/#!tkai/wnom2 or contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email [email protected]. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. If you suffered a loss in Tokai you have until September 30, 2016 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT: Contact: Bronstein, Gewirtz & Grossman, LLC Peretz Bronstein or Yael Hurwitz 212-697-6484 | [email protected]