Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against SCYNEXIS, Inc. (SCYX)
NEW YORK, Nov. 08, 2023 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the District of New Jersey on behalf of all persons or entities who purchased or otherwise acquired SCYNEXIS, Inc. (“SCYNEXIS” or the “Company”) (NASDAQ: SCYX) securities between March 31, 2023 and September 22, 2023, inclusive (the “Class Period”). The lawsuit seeks to recover damages for the Company’s investors under the federal securities laws.
SCYNEXIS is a biotechnology company which is primarily engaged in the development of ibrexafungerp, a broad-spectrum, intravenous (IV)/oral agent for fungal indications.
The Complaint in the SCYNEXIS class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) the equipment allegedly used to manufacture ibrexafungerp was also used to manufacture a non-antibacterial beta-lactam drug substance, presenting a risk of cross-contamination; (ii) SCYNEXIS allegedly did not have effective internal controls and procedures, as well as adequate internal oversight policies to ensure that its vendor complied with current Good Manufacturing Practices; and (iii) due to the alleged substantial risk of cross-contamination, SCYNEXIS was reasonably likely to recall its ibrexafungerp tablets and halt its clinical studies.
The Complaint further alleges that on September 25, 2023, SCYNEXIS revealed that following a recent review by GSK plc of the manufacturing process and equipment at the vendor that manufactures the ibrexafungerp drug substance, SCYNEXIS became aware of potential cross-contamination of ibrexafungerp with a non-antibacterial beta-lactam drug substance. The Complaint also alleges that SCYNEXIS declared it would conduct a recall of BREXAFEMME from the market and place a temporary hold on clinical studies of ibrexafungerp, including a Phase 3 clinical study, until a mitigation strategy and a resupply plan are determined, according to the complaint. The Complaint further alleges that on this news, the price of SCYNEXIS stock fell more than 41% over two trading sessions.
Investors who purchased or otherwise acquired shares of SCYNEXIS should contact the Firm prior to the January 8, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].
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