A lawsuit was filed on behalf of investors in Synergy Pharmaceuticals Inc (NASDAQ: SGYP) shares over alleged securities laws violations. Deadline: April 12, 2019. NASDAQ: SGYP investors should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 02/28/2019 -- An investor, who purchased shares of Synergy Pharmaceuticals Inc (NASDAQ: SGYP), filed a lawsuit over alleged violations of Federal Securities Laws by Synergy Pharmaceuticals Inc in connection with certain allegedly false and misleading statements.
Investors who purchased shares of Synergy Pharmaceuticals Inc (NASDAQ: SGYP) have certain options and for certain investors are short and strict deadlines running. Deadline: April 12, 2019. NASDAQ: SGYP investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
On September 5, 2017, Synergy Pharmaceuticals Inc announced that Synergy Pharmaceuticals Inc closed on a "non-dilutive" $300 million loan from CRG Partners III L.P., which would be available to Synergy "when needed" and fund the Company's operations through 2019.
Then, on October 25, 2018, Synergy Pharmaceuticals Inc disclosed that the Company had attempted to renegotiate the CRG Loan, but that its efforts to further amend the agreement with respect to financial and revenue covenants had been unsuccessful, that the Company might not be able to satisfy the minimum liquidity covenant in the term loan agreement or secure alternative financing, and that as a result, Synergy might be forced to default on the term loan agreement. With respect to TRULANCE, the Company's lead product, Synergy Pharmaceuticals Inc also disclosed that uptake in 2018 was slower than anticipated due to a highly competitive market access environment and slower than anticipated overall market growth. As a result, Synergy Pharmaceuticals Inc was projecting total net sales of TRULANCE for 2018 to be between $42 and $47 million, significantly below the minimum revenue covenant of $61 million as set forth in the term loan agreement. Synergy Pharmaceuticals Inc further disclosed that if TRULANCE sales failed to meet that threshold, the Company would be subject to prepayment penalties equal to $38 million to $51 million.
The plaintiff claims that the defendants violated the Securities Exchange Act of 1934 by misrepresenting and/or failing to disclose that the Company's launch of its primary product TRULANCE was not as successful as represented and as a result, revenues from TRULANCE underwhelmed, that Synergy faced substantial risk that it would not be able to satisfy various covenants in its senior secure loan from CRG Partners III L.P. ("CRG") due to the Company's poor launch of TRULANCE and its underwhelming performance, that Synergy's relationship with CRG had soured and CRG was no longer willing to collaborate or be flexible with respect to requirements of the senior secure loan; and that the Company's strategic review had failed to yield a "white knight" or financing alternative and as a result, the Company was likely to default and enter into bankruptcy.
On December 21, 2018, Synergy Pharmaceuticals Inc filed a voluntary petition for relief under Chapter 11 of Title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of New York.
Those who purchased shares of Synergy Pharmaceuticals Inc (NASDAQ: SGYP) have certain options and should contact the Shareholders Foundation.
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