San Diego, CA -- (SBWIRE) -- 04/17/2012 -- Certain directors and officers of Chelsea Therapeutics International Ltd. are under the investigation over possible breaches of fiduciary duties over certain statements made in connection with Chelsea Therapeutics’ new drug Northera.
Investors who are current long term stockholders in shares of Chelsea Therapeutics International Ltd. (NASDAQ:CHTP) have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm for current long term investors in Chelsea Therapeutics International Ltd. (NASDAQ:CHTP)stocks follows a lawsuit filed earlier by certain NASDAQ:CHTP shareholders against Chelsea Therapeutics International Ltd. over alleged securities laws violations. The investigation on behalf of current long term investors in Chelsea Therapeutics International Ltd. (NASDAQ:CHTP)stocks concerns whether certain Chelsea Therapeutics International Ltd. (NASDAQ:CHTP)officers and directors breached their fiduciary duties and are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court for the Western District of North Carolina the plaintiff alleges that Chelsea Therapeutics International Ltd. violated the Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the plaintiff claims that between November 3, 2008 and March 28, 2012 defendants conditioned investors to believe that Northera (droxidopa), an orally-active synthetic precursor of norepinephrine being developed for the treatment of symptomatic neurogenic orthostatic hypotension would receive approval from the U.S. Food and Drug Administration ("FDA") through a host of materially false and misleading statements regarding the safety and efficacy of the product, as well as reportedly positive results from Northera's clinical trials.
On March 28, 2012, after the market closed, Chelsea Therapeutics International disclosed that it had received a complete response letter from the FDA whereby it rejected the Company's New Drug Application for Northera. Moreover, the FDA requested that the Company "submit data from an additional positive study to support efficacy demonstrated in Study 301 along with the recommendation that such a study be designed to demonstrate durability of effect over a 2- to 3-month period."
NASDAQ:CHTP shares dropped from almost $5 on February 10, 2012 to under $2.50 in the end of March 2012 and closed on April 16, 2012 at $1.97 per share.
Those who are current long term stockholders in shares of Chelsea Therapeutics International Ltd. (NASDAQ:CHTP) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego