A lawsuit was filed on behalf of investors in Tokai Pharmaceuticals Inc (NASDAQ:TKAI) shares over alleged securities laws violations and NASDAQ:TKAI investors should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 08/15/2016 -- An investor, who purchased NASDAQ:TKAI shares, filed a lawsuit in New York over alleged violations of Federal Securities Laws by Tokai Pharmaceuticals Inc in connection with certain allegedly false and misleading statements.
Investors who purchased shares of Tokai Pharmaceuticals Inc (NASDAQ:TKAI) have certain options and for certain investors are short and strict deadlines running. Deadline: September 30, 2016. NASDAQ:TKAI investors should contact the Shareholders Foundation at firstname.lastname@example.org or call 858-779-1554.
The plaintiff claims that between June 24, 2015 and July 25, 2016 the Defendants made false and/or misleading statements and/or failed to disclose thatthere were significant structural problems with the trial design for Tokai's pivotal Phase 3 galeterone study, ARMOR3-SV, that consequently, ARMOR3-SV was unlikely to succeed in meeting its primary endpoint, that as a result, commercialization of galeterone was less likely and/or imminent than Tokai had led investors to believe, and that as a result of the foregoing, the Company's financial statements, as well as Defendants' statements about Tokai's business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On November 2, 2015, a report was published titled "What's Wrong With Tokai Pharmaceuticals?", alleging significant issues with the company's trials for galeterone, Tokai's sole product. The report stated, in part, that "Tokai's attempt at a Phase 3 trial is based on data from just 6 patients out of 87 in Phase 2, based on after-the-fact cherry picking of data"; "Tokai dramatically changed its trial design between Phase 2 and Phase 3 and the FDA has already warned Tokai about problems with its trial design"; and "[i]nsider trading has been rampant ahead of preliminary data in 2016." Shares of Tokai Pharmaceuticals Inc (NASDAQ:TKAI) declined to as low as $9.38 per share on November 2, 2015.
On July 26, 2016, Tokai Pharmaceuticals Inc announced that it was ending a late-stage trial of galeterone, its potential prostate cancer therapy. Tokai Pharmaceuticals Inc stated that it did not believe the phase 3 study would meet its primary endpoint.Shares of Tokai Pharmaceuticals Inc (NASDAQ:TKAI) declined from $18.39 per share in September 2014 to as low as $1.01 per share on July 28, 2016.
Those who purchased shares of Tokai Pharmaceuticals Inc have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego