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Case Status:    ONGOING    
On or around 10/12/2018 (Ongoing date of last review)

Filing Date: June 19, 2018

According to the Complaint, Flex Pharma is a biotechnology company that develops clinically proven products and treatments for muscle cramps and spasms. The Company develops medicines for nocturnal leg cramps, cervical dystonia, spinal cord spasticity, and multiple sclerosis. Flex Pharma serves customers in the United States.

On August 1, 2017, Flex Pharma announced the initiation of a Phase 2 trial, referred to as the “COMMEND” trial, to evaluate its product candidate FLX-787 with a focus on treatment for ALS. On October 16, 2017, Flex announced the initiation of a second Phase 2 trial, referred to as the “COMMIT” trial, to evaluate FLX-787 in patients with CMT.

The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Flex Pharma overstated the viability and approval prospects for its product candidate FLX-787 for the treatment of ALS and CMT; and (ii) as a result, Flex Pharma’s public statements were materially false and misleading at all relevant times.

On June 13, 2018, Flex Pharma announced that it planned to halt both the COMMEND and the COMMIT trials, citing oral tolerability concerns observed in both studies. Flex Pharma further announced that the Company will restructure its organization to reduce costs, including reducing its workforce by approximately 60%, and that Flex Pharma’s Board is exploring “strategic alternatives, including the potential sale or merger of the company.”

On this news, Flex Pharma’s share price fell $3.14, or 75.12%, to close at $1.04 on June 13, 2018.

COMPANY INFORMATION:

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

SECURITIES INFORMATION:

Ticker Symbol: FLKS
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: S.D. New York
DOCKET #: 18-CV-05493
JUDGE: Hon. Vernon S. Broderick
DATE FILED: 06/19/2018
CLASS PERIOD START: 11/06/2017
CLASS PERIOD END: 06/12/2018
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. 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
—Reference Complaint Complaint Related Data is not available
—Related District Court Filings Data is not available