NeurogesX, Inc (NASDAQ:NGSX) Investor Files Class Action Lawsuit Over Alleges Securities Laws Violations Over Certain Financial Statements
April 23, 2012 (Shareholders Foundation) -- An investor in NASDAQ:NGSX shares filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws in connection with certain financial statements.
According to the complaint the plaintiff alleges that NeurogesX’ Board of Directors issued materially false and misleading statements and/or failed to disclose material adverse facts concerning the employment of Dr. Jeffrey K. Tobias, the Company's former Chief Medical Officer and Executive Vice President of Research and Development. Specifically, the complaint alleges that representatives of NeurogesX, including Dr. Jeffrey K. Tobias himself, failed to disclose and/or actively concealed the fact that Dr. Jeffrey K. Tobias was seeking other employment and as a result of the aforementioned allegations, NeurogesX's stock traded at artificially high prices.
On September 27, 2011, NeurogesX, Inc (announced Dr. Jeffrey K. Tobias ' resignation.
Shares of NeurogesX, Inc (NASDAQ:NGSX) declined from $1.66 on September 21, 2011 to $0.77 on October 7, 2012.
NeurogesX, Inc (NASDAQ:NGSX) reported that its Total Revenue rose from $2.01million in 2009 to $11.50million in 2011 while its Net Loss increased from $21.87million in 2009 to $49.55million in 2011.
Shares of NeurogesX, Inc (NASDAQ:NGSX) rose from as low as $1.08 in March 2009 to as high as $9.48 per share in May 2010.
Since then NASDAQ:NGSX shares lost substantial in value and closed on April 23, 2012 at $0.463 per share.