According to a press release dated February 3, 2012, the complaint alleges that beginning on February 12, 2010, the Company, along with its Chief Executive Officer, issued a series of materially false and misleading statements to investors about a product’s commercial viability, effectiveness, and market potential that caused shares of the Company to trade at artificially high prices. Specifically, it is alleged that officials at the Company boasted that clinical data demonstrated that the product had a “statistically significant” effect on female patients treated with the product, and that the product was “the most clinically advanced pharmaceutical product in the U.S.” Additionally, it is alleged that the Company and its Chief Executive Officer misled investors by routinely analogizing the product’s market potential to the $2 billion dollar market for male erectile drugs, often comparing it to products like “Viagra, Levitra, and Cialis.”
On December 14, 2011, the Company issued a press release disclosing for the first time that the product failed to yield positive results in large-scale efficacy tests designed by the Company. According to study results, women treated with the product did not experience statistically significant increases in either total satisfying sexual encounters or sexual desire. On this news, shares declined by over 75% of their value. After trading as high as $2.52 on December 13, 2011, shares of the Company closed on December 19, 2011, at just $0.38 per share.
On September 6, 2012, the Court issued an Order appointing lead plaintiffs and approving the selection of lead counsel.
On November 6, 2012, the Plaintiffs filed their consolidated complaint.
On September 11, 2013, the Court issued a Memorandum Opinion and Order granting defendants' motion to dismiss. Plaintiffs were given leave to file an amended complaint. Plaintiffs did not file an amended complaint, so the Court ordered this case to be terminated on October 23rd.