Pomerantz LLP was appointed Lead Counsel in a class action lawsuit against Lipocine Inc. (“Lipocine” or the “Company”), and certain of the company’s officers. The class action, filed in United States District Court, District of New Jersey, is on behalf of a class consisting of all persons other than Defendants who purchased or acquired Lipocine securities between June 30, 2015 and June 28, 2016, both dates inclusive (collectively, the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder.
Lipocine is a specialty pharmaceutical company, which develops pharmaceutical products using its oral drug delivery technology in the areas of men’s and women’s health.
The Complaint alleges that throughout the Class Period, defendants made materially false and/or 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: (1) Lipocine's filing of its New Drug Application to the U.S. Food and Drug Administration for LPCN 1021, Lipocine's lead product candidate, contained deficiencies; and (2) as a result, defendants' statements about Lipocine's business and operations were false and misleading and/or lacked a reasonable basis.
On June 29, 2016, the Company issued a press releasing disclosing its receipt of a Complete Response Letter for LPCN 1021 from the FDA, identifying deficiencies relating to the product’s dosing algorithm and advising Lipocine that its LPCN 1021 application could not be approved in its current form.
On this news, shares of Lipocine fell $3.17 per share or over 50% to close at $3.10 per share on June 29, 2016, damaging investors.