A lawsuit was filed on behalf of investors in Novan Inc (NASDAQ:NOVN) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 12/05/2017 -- An investor in NASDAQ:NOVN shares filed a lawsuit in over alleged violations of Federal Securities Laws by Novan Inc in connection with the Company's initial public offering ("IPO").
Investors who purchased shares of Novan Inc (NASDAQ:NOVN) have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call 858-779-1554.
The plaintiff alleges that in the IPO Registration Statement and Prospectus, and between September 26, 2016 and January 26, 2017, defendants made materially false and misleading statements regarding Novan's business and outlook, specifically regarding SB204. The plaintiff alleges that the Defendants' statements falsely stated that the two Phase 3 clinical trials were identical and omitted specific facts as to why the two critical trials were, in fact, not identical, that as a result of these false statements, the Company's outlook and expected financial performance were not accurately represented to the market at all relevant times and that as a result of defendants' false statements between September 26, 2016 and January 26, 2017, the price of Novan Inc (NASDAQ:NOVN) stock climbed significantly above the IPO price of $11.00 per share, reaching as high as $29.09 per share on December 7, 2016.
On January 27, 2017, Novan Inc (NASDAQ:NOVN) announced top-line results from the Company's two, replicate Phase 3 pivotal clinical trials for SB204 in the treatment of acne vulgaris. Shares of Novan Inc (NASDAQ:NOVN) dropped on January 27, 2017 to as low as $3.52 per share.
On June 5, 2017, Novan Inc announced that it was replacing its CEO and co-founder and that it was laying off 20% of its workforce.
Those who purchased shares of Novan Inc (NASDAQ:NOVN) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego