NEW YORK, NY - (NewMediaWire) - July 20, 2020 - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Verrica Pharmaceuticals Inc. ("Verrica" or the "Company")(NASDAQ:VRCA) of the September 14, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Verrica stock or options between September 16, 2019 and June 29, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/VRCA. There is no cost or obligation to you.
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The lawsuit has been filed in the U.S. District Court for the Eastern District of Pennsylvania on behalf of all those who purchased Verrica securities between September 16, 2019 and June 29, 2020 (the "Class Period"). The case, Potter v. Verrica Pharmaceuticals Inc., et al., No. 20-cv-03447 was filed on July 14, 2020.
Verrica develops medications for viral skin diseases requiring medical interventions. VP-102 is Verrica’s lead product candidate for the treatment of molluscum contagiosum.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose to investors: (1) that the Company’s proprietary applicator used for VP-102 posed certain safety risks if the instructions were not properly followed; (2) that, as a result, Verrica would incorporate certain user features to mitigate the safety risk; (3) that the addition of the user feature would require additional testing for stability supportive data; (4) that, as a result of the foregoing, regulatory approval for VP-102 was reasonably likely to be delayed; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
On June 29, 2020, Verrica disclosed receipt of a letter from the U.S. Food and Drug Administration ("FDA") regarding the Company's New Drug Application for VP-102 for the treatment of molluscum contagiosum. The letter identified certain deficiencies that preclude discussion of labeling and post-marketing requirements. Moreover, according to the Company, the FDA's information requests have included "a specific request related to a potential safety issue with the applicator that could arise if the instructions for use were not properly followed."
On this news, Verrica's share price fell from $14.07 per share on June 29, 2020 to a closing price of $11.01 on June 30, 2020: a $3.06 or a 21.75% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Verrica's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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