TESARO Inc (NASDAQ:TSRO) Investor Securities Class Action Lawsuit 11/09/2018

If you purchased a significant amount of shares of TESARO Inc (NASDAQ:TSRO) between November 4, 2016 through November 14, 2016, and / or if you purchased any NASDAQ:TSRO shares prior to November 2016 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: January 9, 2019. NASDAQ:TSRO investors should contact the Shareholders Foundation, INc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Case Name: 
TESARO Shareholder Class Action Lawsuit 11/09/2018
Case Status: 
Lawsuit Filed
Affected Securities
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
Class Period Begin: 
Class Period End: 
Court of Filing: 
U.S. District Court for the District of Massachusetts
Deadline To File for Lead: 

An investor in shares of TESARO Inc (NASDAQ:TSRO) filed a lawsuit in the U.S. District Court for the District of Massachusetts over alleged violations of Federal Securities Laws by TESARO Inc in connection with certain allegedly false and misleading statements made between November 4, 2016 through November 14, 2016.

Waltham, MA based TESARO, Inc. is an oncology-focused biopharmaceutical company that operates through the business of developing and commercializing of oncology-focused therapeutics segment. TESARO Inc’s product portfolio has included Varubi (rolapitant), a neurokinin-1 (NK-1) receptor antagonist for the prevention of chemotherapy induced nausea and vomiting. In 2015, the U.S. Food and Drug Administration (“FDA”) approved an oral version of Varubi.

On March 14, 2016, TESARO Inc announced the submission of a New Drug Application for an intravenous formulation of Varubi to the FDA. TESARO Inc reported that its annual Total Revenue rose from $0.32 million in 2015 to $44.82 million in 2016. On October 25, 2017, TESARO Inc announced the FDA’s approval of its intravenous version of Varubi.

On July 7, 2016, TESARO, Inc announced the closing of a previously announced underwritten public offering of common stock, pursuant to which the Company sold 5,347,500 shares at an offering price to the public of $81.00 per share (the “July Offering”). In an announcement, TESARO, Inc advised investors that the net proceeds from the July Offering would be approximately $409 million.

On November 4, 2016, TESARO, Inc filed a quarterly report on Form 10-Q with the SEC, reporting the Company’s financial and operating results for the quarter ended September 30, 2016 (the “Q3 2016 10-Q”). The Q3 2016 10-Q stated, inter alia, that “[o]ur balance of cash and cash equivalents as of September 30, 2016, and the cash we expect to generate from sales of VARUBI, are expected to be sufficient to meet our existing cash flow requirements and fund our existing operations at their currently planned levels through at least the twelve months.” (Emphasis added.)
Aftermarket close on November 14, 2016—less than four months after the July Offering, and just ten days after assuring investors that VARUBI sales would be sufficient to fund the Company’s cash flow requirements and necessary operational funding for the next 12 months—Tesaro abruptly announced another proposed public offering (the “November Offering”). In an announcement, Tesaro stated that the Company had “commenced an underwritten public offering of 1,750,000 shares of its common stock”, “pursuant to its automatic shelf registration statement on Form S-3 filed with the [SEC] on June 30, 2016.” That same day, Tesaro filed a preliminary prospectus supplement and related prospectus for the November Offering with the SEC.
Then, on November 15, 2016, Tesaro issued a second press release, announcing that the offering price for the November Offering would be $135.00 per share—roughly 9%, lower than the price of Tesaro stock at market close on November 14, 2016 ($148.50), the last trading session prior to the announcement of the November Offering.

Then, on January 12, 2018, TESARO Inc announced that it had updated the U.S. labeling for Varubi (rolapitant), indicated for the prevention of delayed nausea and vomiting associated with chemotherapy, after receiving reports of "[a]naphylaxis, anaphylactic shock and other serious hypersensitivity reactions . . . in the postmarketing setting, some requiring hospitalization." TESARO Inc further stated that it "has issued a Dear Healthcare Professional (DHCP) letter."

According to the complaint the plaintiff alleges on behalf of purchasers of TESARO Inc (NASDAQ:TSRO) common shares between November 4, 2016 through November 14, 2016, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between November 4, 2016 through November 14, 2016, the Defendants made false and/or misleading statements and/or failed to disclose that notwithstanding the completion of the July Offering, TESARO Inc’s liquidity position was insufficient to meet its cash flow requirements and fund its existing operations, that accordingly, unbeknownst to investors, an additional public offering of TESARO Inc common stock was imminent, and that as a result, TESARO Inc’s public statements were materially false and misleading at all relevant times.