NEW YORK, Aug. 12, 2016 /PRNewswire/ -- Pomerantz LLP
announces that a class action lawsuit has been filed against Tokai
Pharmaceuticals, Inc. ("Tokai" or the "Company")
(NASDAQ: TKAI) and certain of its officers. The class action,
filed in United States District Court, Southern District of
New York, and docketed under
16-cv-06106, is on behalf of a class consisting of all persons or
entities who purchased or otherwise acquired Tokai securities
between June 24, 2015 and
July 25, 2016 inclusive (the "Class
Period"). This class action seeks to recover damages against
Defendants for alleged violations of the federal securities laws
under the Securities Exchange Act of 1934 (the "Exchange
Act").
If you are a shareholder who purchased Tokai securities during
the Class Period, you have until September
30, 2016 to ask the Court to appoint you as Lead Plaintiff
for the class. A copy of the Complaint can be obtained at
www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com
or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who
inquire by e-mail are encouraged to include their mailing address,
telephone number, and number of shares purchased.
[Click here to join this class action]
Tokai is a biopharmaceutical company focused on developing and
commercializing innovative therapies for prostate cancer and other
hormonally-driven diseases. The Company's lead drug candidate is
galeterone, an oral small molecule that was, at all relevant times,
in various clinical trials for the treatment of patients with
metastatic castration-resistant prostate cancer.
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) there were
significant structural problems with the trial design for Tokai's
pivotal Phase 3 galeterone study, ARMOR3-SV; (ii) consequently,
ARMOR3-SV was unlikely to succeed in meeting its primary endpoint;
(iii) as a result, commercialization of galeterone was less likely
and/or imminent than Tokai had led investors to believe; and (iv)
as a result of the foregoing, the Company's financial statements,
as well as Defendants' statements about Tokai's business,
operations, and prospects, were false and misleading and/or lacked
a reasonable basis.
On November 2, 2015, Richard Pearson published an article on the
investment website Seeking Alpha, entitled "What's Wrong
With Tokai Pharmaceuticals?" (the "Pearson Report"). The
Pearson Report described structural problems with the design of the
Company's ARMOR3-SV trial.
On this news, Tokai's share price fell $0.07, or 0.63%, to close at $10.98 on November 2,
2015.
On July 26, 2016, Tokai announced
plans "to discontinue the ARMOR3-SV clinical trial, our pivotal
Phase 3 study" of galeterone.
On this news, Tokai's share price plummeted by $4.10, or nearly 79%, to close at $1.10 on July 26,
2016.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los
Angeles, is acknowledged as one of the premier firms in the
areas of corporate, securities, and antitrust class litigation.
Founded by the late Abraham L.
Pomerantz, known as the dean of the class action bar, the
Pomerantz Firm pioneered the field of securities class actions.
Today, more than 80 years later, the Pomerantz Firm continues in
the tradition he established, fighting for the rights of the
victims of securities fraud, breaches of fiduciary duty, and
corporate misconduct. The Firm has recovered numerous
multimillion-dollar damages awards on behalf of class members. See
www.pomerantzlaw.com.
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SOURCE Pomerantz LLP