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Case Status:    SETTLED
On or around 09/12/2017 (Other)

Filing Date: April 04, 2012

According to the law firm press release, the complaint charges Chelsea and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Chelsea is a biopharmaceutical company that has been developing the drug Northera ("Droxidopa") for use in treating neurogenic orthostatic hypotension ("NOH") in patients with primary autonomic failure, including Parkinson's disease.

The complaint alleges that during the Class Period, defendants issued material misstatements and omissions concerning the safety and efficacy of Droxidopa for patients with NOH. Specifically, defendants failed to disclose, among other things: (i) the results of the Phase III testing of Droxidopa for patients with NOH; (ii) the post-marketing events in Japan (where Droxidopa has been approved for the same indication since 1989); and (iii) the likelihood of FDA approval of Droxidopa for patients with NOH in light of the known adverse material facts concerning Droxidopa. These false and misleading statements resulted in the artificial inflation of the market price of Chelsea common stock during the Class Period.

On February 13, 2012, defendants announced the that FDA had provided Chelsea with a briefing document that the FDA staff had prepared for the February 23, 2012 Advisory Committee meeting and that it had raised questions concerning Droxidopa’s risk-benefit analysis. On this disclosure, Chelsea stock dropped from $4.99 per share to $3.11 per share. Then, on February 21, 2012, the FDA publicly released the briefing document that had been provided to Chelsea on February 13, 2012. The FDA recommended that Droxidopa for patients with NOH not be approved for use in the United States, stating that Droxidopa had not demonstrated durable effectiveness in clinical trials and showed worrisome safety signals in test results and in post-marketing cases in Japan. As a result, on February 21, 2012, the market price of Chelsea common stock dropped again, closing at $2.64 per share.

Plaintiff seeks to recover damages on behalf of all purchasers of Chelsea common stock during the Class Period (the “Class”).

On May 9, 2012, the Court issued an Order granting the motion to consolidate cases.

On August 16, 2012, the Court issued an Order appointing lead plaintiff and approving the selection of lead counsel. On October 5, the lead plaintiff filed a consolidated complaint.

On October 9, 2013, the Court issued an Order granting the defendants' Motion to Dismiss with prejudice. A Clerk's Judgment was entered in accordance with this Order. On November 8th, Lead Plaintiff filed a Notice of Appeal of the above Judgment.

On March 16, 2015, the Court of Appeals vacated the district court's judgment and remanded this case for further proceedings.

On August 26, 2015, the Court issued an Order denying defendants' Motion to Dismiss.

On May 27, 2016, the parties filed a Stipulation of Settlement. The Settlement was preliminarily approved by the Court on June 1. On September 19, the Court granted final approval of the Settlement and entered Final Judgment.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Biotechnology & Drugs
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: CHTP
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: W.D. North Carolina
DOCKET #: 12-CV-00213
JUDGE: Hon. Max O. Cogburn, Jr
DATE FILED: 04/04/2012
CLASS PERIOD START: 11/03/2008
CLASS PERIOD END: 03/28/2012
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bronstein, Gewirtz & Grossman, LLC (New York)
    60 East 42nd Street - Suite 4600, Bronstein, Gewirtz & Grossman, LLC (New York), NY 10165
    212.697.6484 212.697.7296 · info@bgandg.com
  2. Jackson & McGee, LLP
    225 E. Worthington Avenue, Suite 200 , Jackson & McGee, LLP, NC 28203
    (704) 377-6680 (704) 377-6690 ·
  3. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 · info@pomerantzlaw.com/
No Document Title Filing Date
COURT: W.D. North Carolina
DOCKET #: 12-CV-00213
JUDGE: Hon. Max O. Cogburn, Jr
DATE FILED: 07/08/2015
CLASS PERIOD START: 09/20/2010
CLASS PERIOD END: 05/21/2012
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Faruqi & Faruqi LLP (New York)
    685 3rd Avenue 26th Floor, Faruqi & Faruqi LLP (New York), NY
    212..983.9330 212..983.9331 ·
  2. Ward Black Law
    208 W. Wendover Avenue, Ward Black Law, NC 27401
    336.333.2244 336.379.9415 ·
No Document Title Filing Date