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Synergy Pharmaceuticals Inc (NASDAQ:SGYP) Investor Securities Class Action Lawsuit 02/09/2018

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Lawsuit Overview

Company
Synergy Pharmaceuticals Inc
Security
NASDAQ: SGYP

Case Name
Synergy Pharmaceuticals Shareholder Class Action Lawsuit 02/09/2018
Type of Lawsuit
Shareholder Class Action
Court of Filing
U.S. District Court for the Eastern District of New York

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Summary

November 30, 2019 - A second amended consolidated complaint was filed.

August 31, 2018 - An amended consolidated complaint was filed.

February 8, 2018 - An investor in shares of Synergy Pharmaceuticals Inc (NASDAQ:SGYP) filed a lawsuit in the U.S. District Court for the Eastern District of New York over alleged violations of Federal Securities Laws by Synergy Pharmaceuticals Inc in connection with certain allegedly false and misleading statements made between September 5, 2017 and November 14, 2017.

According to the complaint the plaintiff alleges on behalf of purchasers of Synergy Pharmaceuticals Inc (NASDAQ:SGYP) common shares between September 5, 2017 and November 14, 2017, that the defendants violated Federal Securities Laws.

New York based Synergy Pharmaceuticals Inc. is a biopharmaceutical company focused on the development and commercialization of gastrointestinal (GI) therapies. Synergy Pharmaceuticals Inc reported that its Net Loss increased from $117.50 million in 2015 to $198.61 million in 2016.

On September 5, 2017, Synergy Pharmaceuticals Inc announced that Synergy Pharmaceuticals Inc closed on a non-dilutive $300 million loan from CRG Partners III L.P., which would be available to Synergy when needed and fund the Company's operations through 2019.

The plaintiff alleges that on November 14, 2017, Synergy Pharmaceuticals Inc revealed that terms of the loan agreement, omitted from Defendants' prior statements regarding the loan, prevented it from accessing $200 million of the loan without conducting a dilutive secondary offering or offerings of shares to raise cash and, as such, the Company was conducting a secondary offering of its shares.
Furthermore, the plaintiff says that contrary to Defendants' statements in early September 2017, the loan was not available to Synergy when needed, would result in dilution of the outstanding shares, and would not be sufficient to fund the Company's operations through 2019, without dilution.

Shares of Synergy Pharmaceuticals Inc (NASDAQ:SGYP) declined on November 15, 2017, to as low as $1.68 per share.