DENVER–(BUSINESS WIRE)–Shuman, Glenn & Stecker announces that it is investigating potential claims against certain officers and directors of Zynerba Pharmaceuticals, Inc. (“Zynerba” or the “Company”) (NASDAQ: ZYNE). Zynerba operates as a clinical stage specialty pharmaceutical company.
The Firm’s investigation relates to allegations raised in a securities class action against Zynerba and certain of its senior officers in the U.S. District Court for the Eastern District of Pennsylvania. In 2018, Zynerba began a Phase II clinical trial of Zygel in children and adolescents with developmental and epileptic encephalopathies (“DEE”). The lawsuit alleges that Zynerba issued a series of public statements touting Zygel which failed to disclose that nearly all patients treated with Zygel in the trial suffered treatment emergent adverse events, including a majority who suffered treatment related adverse events, and more than 20% suffered serious adverse events. The lawsuit further alleges that these events created a risk to Zynerba’s ability to continue developing Zygel and that Zynerba, which has a history of failed trials, would fail to secure the necessary regulatory approvals for commercializing Zygel.
On September 18, 2019, Zynerba announced results from the Zygel trial and disclosed that 96% of patients treated with Zygel experienced a treatment emergent adverse event, 60% of patients experienced a treatment related adverse event, and 10 patients reported a serious adverse event. On this news, Zynerba’s stock price fell by nearly 22% to close at $8.84 per share. Zynerba’s stock price has never recovered and currently trades for less than $4.50 per share. On November 25, 2020, the federal judge presiding over the securities class action denied the defendants’ motion to dismiss the claims, paving the way for the case to proceed towards trial.
If you currently own Zynerba common stock and are interested in discussing your rights, or have information relating to this investigation, please contact Brett Stecker toll free at (866) 569-4531 or email Mr. Stecker at firstname.lastname@example.org.
Shuman, Glenn & Stecker represents investors throughout the nation, concentrating its practice in stockholder litigation.