NEW YORK, Dec. 05, 2017 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a class action lawsuit has been filed against Novan, Inc. (“Novan” or the “Company”) (Nasdaq: NOVN ) in the United States District Court for the Middle District of North Carolina on behalf of investors who purchased during the period between September 21, 2016 and January 26, 2017 (the “Class Period”), including those who purchased Novan stock pursuant and/or traceable to the Registration Statement and Prospectus issued in connection with the Company’s initial public offering on or about September 21, 2016 (“IPO”).
Investors who have incurred losses in Novan, Inc a re urged to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action on our website, www.whafh.com.
If you have incurred losses in the securities of and would like to assist with the litigation process as a lead plaintiff, you may, no later than January 2, 2018 , request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights as an investor in Novan, Inc.
Novan is a clinical-stage drug development company that focuses on the development and commercialization of nitric oxide-based therapies in dermatology. At all relevant times, Novan’s lead product candidate was SB204, a once-daily topical gel for the treatment of acne vulgaris.
The filed complaint in the Middle District of North Carolina alleges that in the IPO Registration Statement and Prospectus, and throughout the Class Period, defendants made materially false and misleading statements regarding Novan’s business and outlook, specifically regarding SB204.
Defendants stated that Novan had commenced and performed two identically designed Phase 3 clinical trials for SB204. Defendants’ statements falsely stated that the two Phase 3 clinical trials were identical and omitted specific facts as to why the two critical trials were, in fact, not identical.
As a result of the defendants’false statements during the Class Period, the price of Novan stock climbed significantly above the IPO price of $11.00 per share, reaching as high as $29.09 per share on December 7, 2016.
Before the market opened on January 27, 2017, Novan announced the top-line results of its two Phase 3 clinical trials of SB204. Although the drug hit all of its goals in one of the trials, it failed to beat a placebo in the other trial. On this news, the price of Novan stock dropped from a close of $18.70 per share on January 26, 2017, to a close of $4.86 per share on January 27, 2017, a decline of 74%.
Wolf Haldenstein Adler Freeman & Herz LLP has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at classmember@whafh.com , or visit our website at www.whafh.com.
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Contact:
Wolf Haldenstein Adler Freeman & Herz LLP Kevin Cooper, Esq. Gregory Stone, Director of Case and Financial Analysis Email: gstone@whafh.com , kcooper@whafh.com or classmember@whafh.com Tel: (800) 575-0735 or (212) 545-4774
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