PHILADELPHIA (Legal Newsline) – A shareholder of Devon-based Zynerba, a clinical stage pharmaceutical company relating to cannabinoid (CBD) therapies, claims the company failed to disclose risks it discovered during drug trials.
Andy Velayos filed a class action complaint Oct. 23 in the U.S. District Court for the Eastern District of Pennsylvania against Zynerba Pharmaceuticals Inc. and executive officers Armando Anido and James E. Fickenscher citing the Securities Exchange Act of 1934.
The plaintiff claims that those who held Zynerba securities between March 11 and Sept. 17 suffered losses when stock prices fell more than 21 percent. Velayos alleges the company had touted positive results regarding its clinical trial of Zygel, a transdermal CBD gel for children and adolescents with developmental and epileptic encephalopathies, but actual results shared in a press release showed significant "adverse events" on patients, which caused the stock price to drop.
The plaintiff also alleges stockholders were given false information regarding the drug's trial process.
Velayos seeks monetary relief, trial by jury, interests and all other just relief. He is represented by Jacob Goldberg of The Rosen Law Firm PA in Jenkintown and Jeremy Liberman and Patrick Dahlstrom of The Pomerantz Law Firm LLP in New York City and Chicago.
U.S. District Court for the Eastern District of Pennsylvania case number 2:19-CV-04959-NIQA