October 14, 2016 (Shareholders Foundation) - An investor in shares of Tokai Pharmaceuticals Inc (NASDAQ:TKAI) filed a lawsuit in the U.S. District Court for the Southern District of New York against Tokai Pharmaceuticals Inc and certain Company officers, for among other things, violation of sections 11, 12(a)(2), and 15 of the Securities Act of 1933, and violation of sections 10(b) and 20(a) of the Securities and Exchange Act of 1934 in connection with certain allegedly false and misleading statements made between September 17, 2014 and July 25, 2016.

According to the complaint the plaintiff alleges that the Defendants made materially false and/or misleading statements, as well as failed to disclose information with regard to Tokai's operations and compliance policies byfailing to inform and/or misrepresent the structural problems of phase 3 of the Galeterone trial to shareholders, which subsequently resulted in the failure of the trial, and by filing materially false and/or misleading financial statements.

On July 26, 2016, Tokai Pharmaceuticals Inc announced that it was ending a late-stage trial of galeterone, its potential prostate cancer therapy. Tokai Pharmaceuticals Inc stated that it did not believe the phase 3 study would meet its primary endpoint.Shares of Tokai Pharmaceuticals Inc (NASDAQ:TKAI) declined from $18.39 per share in September 2014 to as low as $1.01 per share on July 28, 2016.