We are investigating Diffusion Pharmaceuticals Inc. (DFFN) (“Diffusion” or the “Company”) for potential violations of the federal securities laws. On July 27, 2020, Diffusion issued a press release “announc[ing] receipt of guidance from the U.S. Food and Drug Administration (FDA) on the Company’s recently-filed Investigational New Drug (IND) application for trans sodium crocetinate (TSC) in COVID-19 patients.” The press release specifically advised investors that “[t]his guidance suggests certain study design changes with regard to endpoints and statistical considerations that Diffusion believes will enhance the prospect of regulatory approvals upon program completion, should the clinical results be favorable.” On this news, Diffusion’s stock price fell $0.18 per share, or 12.64%, to close at $1.14 per share on July 27, 2020.