SAN DIEGO–(BUSINESS WIRE)–Robbins Geller Rudman & Dowd LLP announces that a class action lawsuit has been filed in the Southern District of New York on behalf of purchasers of Evolus, Inc. (NASDAQ:EOLS) common stock between February 1, 2019 and July 6, 2020, inclusive (the “Class Period”). The case is captioned Malakouti v. Evolus, Inc., No. 20-cv-08647, and is assigned to Judge Paul G. Gardephe. The Evolus class action lawsuit charges Evolus and certain of its senior executives with violations of the Securities Exchange Act of 1934.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Evolus common stock during the Class Period to seek appointment as lead plaintiff in the Evolus class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Evolus class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Evolus class action lawsuit. An investor’s ability to share in any potential future recovery of the Evolus class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Evolus class action lawsuit or have questions concerning your rights regarding the Evolus class action lawsuit, please provide your information here or contact counsel, Michael Albert of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the Evolus class action lawsuit must be filed with the court no later than December 15, 2020.
Evolus operates as a medical aesthetics company that develops, produces, and markets clinical neurotoxins for the treatment of aesthetic concerns. Evolus’s sole product is Jeuveau™, which is a purified botulinum toxin indicated for the temporary improvement in the appearance of moderate to severe frown lines in adults. Evolus’s direct competitor in this space is Botox®, which is manufactured by Allergan plc and Allergan Inc. and distributed by Medytox Inc.
The Evolus class action lawsuit alleges that, to secure an rapid influx of revenue for Jeuveau™, defendants disseminated dozens of public statements in which they promoted Jeuveau™ as a proprietary formulation of the botulinum toxin type A complex, purportedly developed by Korean bioengineering company Daewoong through years of clinical research and millions of dollars’ worth of investment in research and development. Among other things, the Evolus class action lawsuit alleges that Evolus promised investors that it would attain the number two U.S. market position within twenty-four months of launch.
The Evolus class action lawsuit alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) the real source of Evolus’s botulinum toxin bacterial strain, as well as the manufacturing processes used to develop Jeuveau™, originated with Medytox and were misappropriated therefrom; (ii) sufficient evidence supported the allegation that Evolus misappropriated certain trade secrets relating to the botulinum toxin strain and the manufacturing processes for the development of Jeuveau™; (iii) any revenues generated from the sale of Jeuveau™ were based on Evolus’s unlawful activities, including the misappropriation of trade secrets and secret manufacturing processes belonging to Allergan and Medytox; and (iv) as a result of the foregoing facts, Evolus faced a real threat of regulatory and/or court action, threatening Evolus’s ability to commercialize Jeuveau™ in the United States and generate revenue.
On July 6, 2020, the U.S. International Trade Commission (“ITC”) issued its Initial Final Determination in a case brought by Allergan and Medytox against Evolus alleging that Evolus stole certain trade secrets to develop Jeuveau™. The ITC found that Evolus had misappropriated the botulinum toxin strain, as well as the manufacturing processes that led to its development and manufacture, and recommended a ten-year ban on Evolus’s ability to import Jeuveau™ into the United States and a cease and desist order preventing Evolus from selling Jeuveau™ in the United States for ten years. On this news, the price of Evolus stock fell more than 37%, damaging investors.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations, and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.