A lawsuit was filed on behalf of investors in TESARO Inc (NASDAQ:TSRO) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 11/26/2018 -- An investor, who purchased shares of TESARO Inc (NASDAQ:TSRO), filed a lawsuit over alleged violations of Federal Securities Laws by TESARO Inc in connection with certain allegedly false and misleading statements made between November 4, 2016 through November 14, 2016.
Investors who purchased shares of TESARO Inc (NASDAQ:TSRO) should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
TESARO Inc's product portfolio has included Varubi (rolapitant), a neurokinin-1 (NK-1) receptor antagonist for the prevention of chemotherapy induced nausea and vomiting. In 2015, the U.S. Food and Drug Administration ("FDA") approved an oral version of Varubi.
On March 14, 2016, TESARO Inc announced the submission of a New Drug Application for an intravenous formulation of Varubi to the FDA. TESARO Inc reported that its annual Total Revenue rose from $0.32 million in 2015 to $44.82 million in 2016. On October 25, 2017, TESARO Inc announced the FDA's approval of its intravenous version of Varubi.
On July 7, 2016, TESARO, Inc announced the closing of a previously announced underwritten public offering of common stock, pursuant to which the Company sold 5,347,500 shares at an offering price to the public of $81.00 per share (the "July Offering"). In an announcement, TESARO, Inc advised investors that the net proceeds from the July Offering would be approximately $409 million.
On November 4, 2016, TESARO, Inc filed a quarterly report on Form 10-Q with the SEC, reporting the Company's financial and operating results for the quarter ended September 30, 2016 (the "Q3 2016 10-Q"). The Q3 2016 10-Q stated, inter alia, that "[o]ur balance of cash and cash equivalents as of September 30, 2016, and the cash we expect to generate from sales of VARUBI, are expected to be sufficient to meet our existing cash flow requirements and fund our existing operations at their currently planned levels through at least the twelve months." (Emphasis added.)
Aftermarket close on November 14, 2016—less than four months after the July Offering, and just ten days after assuring investors that VARUBI sales would be sufficient to fund the Company's cash flow requirements and necessary operational funding for the next 12 months—Tesaro abruptly announced another proposed public offering (the "November Offering"). In an announcement, Tesaro stated that the Company had "commenced an underwritten public offering of 1,750,000 shares of its common stock", "pursuant to its automatic shelf registration statement on Form S-3 filed with the [SEC] on June 30, 2016." That same day, Tesaro filed a preliminary prospectus supplement and related prospectus for the November Offering with the SEC.
Then, on November 15, 2016, Tesaro issued a second press release, announcing that the offering price for the November Offering would be $135.00 per share—roughly 9%, lower than the price of Tesaro stock at market close on November 14, 2016 ($148.50), the last trading session prior to the announcement of the November Offering.
Then, on January 12, 2018, TESARO Inc announced that it had updated the U.S. labeling for Varubi (rolapitant), indicated for the prevention of delayed nausea and vomiting associated with chemotherapy, after receiving reports of "[a]naphylaxis, anaphylactic shock and other serious hypersensitivity reactions . . . in the postmarketing setting, some requiring hospitalization." TESARO Inc further stated that it "has issued a Dear Healthcare Professional (DHCP) letter."
The plaintiff claims that between November 4, 2016 through November 14, 2016, the Defendants made false and/or misleading statements and/or failed to disclose that notwithstanding the completion of the July Offering, TESARO Inc's liquidity position was insufficient to meet its cash flow requirements and fund its existing operations, that accordingly, unbeknownst to investors, an additional public offering of TESARO Inc common stock was imminent, and that as a result, TESARO Inc's public statements were materially false and misleading at all relevant times.
Those who purchased shares of TESARO Inc (NASDAQ:TSRO) have certain options and should contact the Shareholders Foundation.
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The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.