Safirstein Metcalf LLP Announces that a Class Action has been Filed Against Synergy Pharmaceuticals Inc – SGYP
Safirstein Metcalf LLP announces that a class action lawsuit has been filed against Synergy Pharmaceuticals Inc. (NASDAQ:SGYP) and certain of its officers, on behalf of shareholders who purchased Synergy securities during the class period between September 5, 2017 and November 14, 2017, both dates inclusive.
If you purchased Synergy securities during the class period, and would like more information about the shareholder class action, please contact Safirstein Metcalf LLP using the form on this page, call our offices at at 1-800-221-0015, or email us directly at info@SafirsteinMetcalf.com
If you wish to serve as lead plaintiff, you must move the Court no later than April 10, 2018. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice or may choose to do nothing and remain an absent class member.
On September 5, 2017, Synergy revealed that it had closed on a “non-dilutive” $300 million loan from CRG Partners III L.P., which would be available to the Company “when needed” to fund its operations through 2019. On November 14, 2017, Synergy divulged that the loan agreement terms, not previously disclosed, prevented the Company from accessing $200 million of the loan without conducting a dilutive secondary offering or offerings of shares to raise cash, and therefore, Synergy was conducting a secondary offering of its shares.
Consequently, contrary to Defendants’ previous statements at the beginning of the Class Period, the loan was not available to Synergy “when needed,” would result in dilution of the outstanding shares, and would not be sufficient to fund operations through 2019, without dilution. Following the news, Synergy stock dropped as low as $1.68 per share.