NEW YORK, Jan. 20, 2017 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in KemPharm, Inc. ("KemPharm" or the "Company") (NASDAQ: KMPH) of the federal securities class action lawsuit filed against the Company and certain officers and directors and underwriters of the Company's April 16, 2015 Initial Public Offering (the "IPO") to seek the role of lead plaintiff.
The lawsuit has been filed in the Iowa District Court for Johnson County on behalf of all those who acquired KemPharm shares pursuant or traceable to the Company's IPO. The case, Christians v. KemPharm, Inc., et al., No. CVCV078476, was filed on November 4, 2016. It was removed to the Southern District of Iowa on January 12, 2017, where it was docketed at No. 3:17-cv-00002-RP-HCA, and has been assigned to Senior District Judge Robert W. Pratt.
The lawsuit focuses on whether the defendants violated federal securities laws by making false and/or misleading statements and/or failing to disclose in its Registration Statement filed in connection with the IPO that: (1) KemPharm constructed a deficient study in connection with its most advanced drug candidate's, Apadaz, abuse-deterrent properties; and (2) as a result, Apadaz would not be labeled as an "abuse-deterrent" product by the Federal Drug Administration (the "FDA").
Specifically, after the market closed on May 5, 2016, the Company announced that the Anesthetic and Analgesic Drug Products Advisory Committee and the Drug Safety and Risk Management Advisory Committee of the FDA had reviewed and voted against inclusion of abuse deterrent labeling for Apadaz.
On this news, KemPharm's share price fell from $15.67 per share on May 5, 2016 to a closing price of $6.91 on May 6, 2016 —a $8.76 or a 55.9% drop.
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If you invested in KemPharm stock and would like to discuss your legal rights, visit www.faruqilaw.com/KMPH. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding KemPharm's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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