Ongoing Investigation into Verrica Pharmaceuticals Inc. by KSF
Investigation of Verrica Pharmaceuticals Inc. by Kahn Swick & Foti
In a significant development, the law firm Kahn Swick & Foti, LLC (KSF), led by former Attorney General of Louisiana, Charles C. Foti, Jr., is actively conducting an investigation into Verrica Pharmaceuticals Inc. (NASDAQ: VRCA). The firm aims to determine whether the company's officers and directors may have breached their fiduciary duties to shareholders, particularly amid ongoing legal struggles and compliance issues.
Company's Regulatory Challenges
Verrica Pharmaceuticals has found itself navigating a complex regulatory environment. In December 2020, they submitted a New Drug Application (NDA) to the FDA for their lead product, known as VP-102 or YCANTH, intended to treat molluscum contagiosum, a viral skin condition. However, the path to approval has been rocky. On September 20, 2021, the company revealed that it had received a Complete Response Letter (CRL) from the FDA, citing deficiencies at the facility operated by its contract manufacturer. This was a significant setback for the company.
Resubmission of the NDA
In November 2021, after addressing issues raised by the FDA inspection, Verrica resubmitted its NDA. The company claimed that this step was meant to correct the deficiencies pointed out during the initial review. Yet, on May 24, 2022, they faced another setback with another CRL, which highlighted ongoing concerns identified in a general reinspection of the manufacturing facility operated by Sterling Pharmaceuticals Services. These hurdles have raised red flags for investors and regulators alike.
Securities Class Action Lawsuit
The challenges faced by Verrica Pharmaceuticals have also led to legal scrutiny. A securities class action lawsuit was filed against the company and certain executives, alleging they failed to disclose crucial information during a defined Class Period, resulting in violations of federal securities laws. The court's recent decision to deny the company’s motion to dismiss in part has allowed this lawsuit to proceed, further complicating the company’s situation.
Focus of the Investigation
As KSF continues its investigation, the main focus remains on whether the officers and directors acted in accordance with their fiduciary duties to the company's shareholders. This inquiry is critical, as it could impact the financial recovery for those affected by the recent turmoil surrounding the company's operations.
How KSF Can Assist Investors
Investors who have information relevant to KSF’s investigation, or those who have held Verrica shares for an extended period, are encouraged to reach out. KSF offers a free initial consultation to discuss your legal rights related to this case. If you feel that you might have been impacted by the company's actions, you can call their toll-free number at 1-833-938-0905.
Contact Information
For further inquiries, individuals can also contact KSF Managing Partner Lewis Kahn directly via email. The firm is committed to serving clients without obligation, aiming to ensure that all investor rights are upheld.
About Kahn Swick & Foti, LLC
Kahn Swick & Foti, LLC is recognized as one of America’s leading boutique securities litigation law firms. Their expertise is sought by various clients, including public institutional investors, retail investors, hedge funds, and money managers who are seeking recourse for losses incurred due to corporate fraud or misconduct. With offices positioned in several states, including New York and California, KSF is positioned to support their clients strategically.
Frequently Asked Questions
What is Kahn Swick & Foti LLC investigating?
KSF is investigating whether the officers and directors of Verrica Pharmaceuticals breached their fiduciary duties to shareholders.
What issues did Verrica Pharmaceuticals face with the FDA?
Verrica received Complete Response Letters regarding regulatory deficiencies at their contract manufacturing facility.
What kind of lawsuit is Verrica facing?
Verrica is facing a securities class action lawsuit due to alleged failures in disclosing material information to shareholders.
How can investors contact KSF?
Investors can reach KSF at 1-833-938-0905 or contact Lewis Kahn via email for more information.
What services does KSF offer?
KSF offers legal support to investors for recovery of losses related to corporate fraud and securities violations.
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