Chiasma Inc (NASDAQ:CHMA) Investor Securities Class Action Lawsuit 06/09/2016

You must submit the settlement "Proof" form attached below, in order to participate in this settlement. There is a strict deadline of August 2, 2019 by which all claims must be submitted. The instructions for submitting are included in the "Proof" and the "Notice" files attached below for your download. DO NOT SEND THE FORMS TO THE SHAREHOLDERS FOUNDATION, FOLLOW THE DIRECTIONS IN THE "PROOF".

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Company Name(s): 
Chiasma
Case Name: 
Chiasma Shareholder Class Action Lawsuit 06/09/2016
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Affected Securities
NASDAQ: CHMA
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
06/09/2016
Class Period Begin: 
07/15/2015
Class Period End: 
04/17/2016
Court of Filing: 
U.S. District Court for the District of Massachusetts
Deadline To File for Lead: 
08/08/2016
Date Settled: 
03/14/2019
Settlement Amount: 
$18,750,000
Deadline to Participate in Settlement: 
08/02/2019
Filed Complaint: 
Settlement Notice: 
Settlement Proof: 
Summary: 

March 14, 2019 - The court preliminarily approved the settlement.

March 1, 2019 - Parties filed a stipulation of settlement.

June 9, 2016 (Shareholders Foundation) - An investor in shares of Chiasma Inc (NASDAQ:CHMA) filed a lawsuit in the U.S. District Court for the District of Massachusetts over alleged violations of Federal Securities Laws by Chiasma Inc in connection with certain allegedly false and misleading statements made between July 15, 2015 and April 17, 2016.

In July 2015 Chiasma Inc offered more than 6,300,000 shares of its common stock at $16.00 per share in connection with its initial public stock offering (“IPO”).

According to the complaint the plaintiff alleges on behalf of purchasers of Chiasma Inc (NASDAQ:CHMA) common shares between July 15, 2015 and April 17, 2016, that the defendants violated Federal Securities Laws under the Securities Exchange Act of 1934 and the Securities Act of 1933. More specifically, the plaintiff claims that Defendants made false and/or misleading statements and/or failed to disclose that Chiasma’s Phase 3 clinical trial methodology for Mycapssa was not sufficient to demonstrate efficacy and secure FDA approval, that Chiasma’s supervision of its suppliers was not sufficient to prevent deficiencies that would delay FDA approval of Mycapssa, and that as a result of the foregoing, Chiasma’s public statements were materially false and misleading at all relevant times.

On April 15, 2016, U.S. Food and Drug Administration (“FDA”) reported its decision on Chiasma’s acromegaly candidate, Mycappsa. The FDA issued a complete response letter and said that the new drug application (NDA) for its treatment of a rare ailment related to the pituitary gland was not ready for approval in its present form. Shares of Chiasma Inc (NASDAQ:CHMA) declined on April 20, 2016, to as low as $3.53 per share.