Pixarbio Corp (OTCMKTS:PXRB) Investor Securities Class Action Lawsuit 01/25/2017
January 25, 2017 (Shareholders Foundation) - An investor in shares of Pixarbio Corp (OTCMKTS:PXRB) filed a lawsuit in the U.S. District Court for the District of New Jersey over alleged violations of Federal Securities Laws by Pixarbio Corp in connection with certain allegedly false and misleading statements.
According to the complaint the plaintiff alleges on behalf of purchasers of Pixarbio Corp (OTCMKTS:PXRB) securities pursuant and/or traceable to PixarBio’s private placement that closed on October 30, 2016 and/or publicly traded on the open market from October 31, 2016 through January 20, 2017, that the defendants violated Federal Securities Laws.
More specifically, the plaintiff claims that the Defendants made allegedly false and/or misleading statements and/or failed to disclose that the market for PixarBio’s securities exhibited manipulative or deceptive activities, that PixarBio’s assertions in press releases, third-party promotional materials, and PixarBio’s Form S-1 concerning, among other things, PixarBio’s business combinations and current shareholders; the identity and qualifications of key shareholders and employees and PixarBio’s current and prospective development efforts lacked veracity, and that as a result, Defendants’ public statements were materially false and misleading at all relevant times.
Medford, MA based PixarBio Corporation, formerly BMP Holdings Inc., is a specialty pharmaceutical/biotechnology company that is focused on pre-clinical and commercial development of neurological drug delivery systems for post-operative pain.
On January 23, 2017, the Securities and Exchange Commission (“SEC”) announced the temporary suspension of trading in the securities of Pixarbio Corp (OTCMKTS:PXRB) “because the market for the security appears to reflect manipulative or deceptive activities and because of questions regarding the accuracy of assertions by PixarBio in press releases and its Form S-1 concerning, among other things: (1) the company’s business combinations and current shareholders; (2) the identity and qualifications of key shareholders and employees; and (3) the company’s current and prospective development efforts.”