NEW YORK, Dec. 30, 2018 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Tesaro, Inc. (“Tesaro” or the “Company”) (NASDAQ: TSRO) and certain of its officers. The class action, filed in United States District Court, District of Massachusetts, and indexed under 18-cv-12352, is on behalf of a class consisting of all persons and entities, other than Defendants and their affiliates, who purchased or otherwise acquired Tesaro securities between November 4, 2016 through November 14, 2016, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased Tesaro securities between November 4, 2016 and November 14, 2016, both dates inclusive, you have until January 9, 2019 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com . To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
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Tesaro is an oncology-focused biopharmaceutical company that identifies, acquires, develops, and commercializes cancer therapeutics and oncology supportive care products in the United States. The Company describes its focus as “responsibly develop[ing] and commercializ[ing] innovative treatments where others may not.”
On July 7, 2016, Tesaro announced the closing of a previously announced underwritten public offering of common stock, pursuant to which the Company sold 5,347,500 shares at an offering price to the public of $81.00 per share (the “July Offering”). In a press release, Tesaro advised investors that the net proceeds from the July Offering would be approximately $409 million.
On November 4, 2016, Tesaro filed a quarterly report on Form 10-Q with the SEC, reporting the Company’s financial and operating results for the quarter ended September 30, 2016 (the “Q3 2016 10-Q”). The Q3 2016 10-Q stated, inter alia , that “[o]ur balance of cash and cash equivalents as of September 30, 2016, and the cash we expect to generate from sales of VARUBI, are expected to be sufficient to meet our existing cash flow requirements and fund our existing operations at their currently planned levels through at least the twelve months. ” (Emphasis added.)
Throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) notwithstanding the completion of the July Offering, Tesaro’s liquidity position was insufficient to meet its cash flow requirements and fund its existing operations; (ii) accordingly, unbeknownst to investors, an additional public offering of Tesaro common stock was imminent; and (iii) as a result, Tesaro’s public statements were materially false and misleading at all relevant times.
After market close on November 14, 2016—less than four months after the July Offering, and just ten days after assuring investors that VARUBI sales would be sufficient to fund the Company’s cash flow requirements and necessary operational funding for the next 12 months—Tesaro abruptly announced another proposed public offering (the “November Offering”). In a press release, Tesaro stated that the Company had “commenced an underwritten public offering of 1,750,000 shares of its common stock,” “pursuant to its automatic shelf registration statement on Form S-3 filed with the [SEC] on June 30, 2016.” That same day, Tesaro filed a preliminary prospectus supplement and related prospectus for the November Offering with the SEC.
Then, on November 15, 2016, Tesaro issued a second press release, announcing that the offering price for the November Offering would be $135.00 per share—roughly 9% lower than the price of Tesaro stock at market close on November 14, 2016 ($148.50), the last trading session prior to the announcement of the November Offering.
Following these announcements, Tesaro’s share price plunged $17.46 per share, or roughly 11.76%, to close at $131.04 on November 15, 2016, wiping out approximately $607 million in shareholder value.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com .
CONTACT: Robert S. Willoughby Pomerantz LLP rswilloughby@pomlaw.com 888-476-6529 ext. 9980
