Class Action Lawsuit Filed Against ESSA Pharma Inc. for Securities Violations
The Schall Law Firm, a renowned national shareholder rights litigation firm, has announced that it is representing investors who purchased securities of ESSA Pharma Inc. (“ESSA” or “the Company”) (NASDAQ:EPIX) between December 12, 2023, and October 31, 2024, inclusive (the “Class Period”). The lawsuit alleges that ESSA Pharma violated the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission (SEC).
Background
ESSA Pharma is a clinical-stage biotechnology company focused on developing and commercializing innovative therapeutics for the treatment of rare and complex bone, mineral, and metabolic disorders. The Company’s lead product candidate, EPI-5895, is a novel, oral, small molecule activator of the sclerostin antagonist pathway, which is currently under development for the treatment of osteogenesis imperfecta (OI), a rare genetic disorder characterized by brittle bones.
Allegations of Securities Violations
The class action lawsuit alleges that ESSA Pharma made false and misleading statements and failed to disclose material information during the Class Period, including:
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The Company’s clinical trial data for EPI-5895 was inadequate to support its regulatory approval.
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The Company failed to disclose that its lead investigator in the EPI-5895 clinical trials had a financial interest in the study.
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The Company failed to disclose that the U.S. Food and Drug Administration (FDA) had raised concerns about the design of the Company’s clinical trials for EPI-5895.
As a result of these alleged false and misleading statements, ESSA Pharma’s stock traded at artificially inflated prices during the Class Period, causing investors harm.
Effect on Individual Investors
If you purchased ESSA Pharma securities during the Class Period, you may be eligible to recover your losses, including damages. The Schall Law Firm encourages you to contact the firm before March 25, 2025, to discuss your legal rights and potential remedies.
Effect on the World
The securities fraud lawsuit against ESSA Pharma raises concerns about the integrity of the biotech industry and the importance of transparency in clinical trial data and disclosures. If the allegations are proven true, it could potentially lead to increased scrutiny of other biotech companies and their clinical trial practices.
Conclusion
The Schall Law Firm’s class action lawsuit against ESSA Pharma is a reminder of the importance of transparency and accuracy in corporate disclosures, particularly in the biotech industry. If you purchased ESSA Pharma securities during the Class Period, you may be entitled to compensation. Contact the Schall Law Firm to discuss your legal rights and potential remedies.
The outcome of this lawsuit could have far-reaching implications for the biotech industry and the importance of transparency in clinical trials and disclosures.
