Robbins Arroyo LLP: Menlo Therapeutics Inc. (MNLO) Misled Shareholders According to Class Action

Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Menlo Therapeutics Inc. MNLO filed a class action complaint against the company's officers and directors for alleged violations of the Securities Act of 1933 in connection with Menlo's January 29, 2018 initial public offering ("IPO"). Menlo, a late-stage biopharmaceutical company, develops and commercializes serlopitant for the treatment of itching associated with dermatologic conditions in the United States.

View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/menlo-therapeutics-inc/

Menlo Accused of Misleading Investors About the Effectiveness of Its Drug

According to the complaint, in its January 2018 IPO, Menlo issued over 8 million shares at $17 per share, raising over $136 million in gross proceeds. In its registration statement, Menlo stated that if the results of its Phase 2 clinical trials for the treatment of pruritus are promising, the company would "rapidly advance into Phase 3 clinical trials" and would use the net proceeds from the IPO to fund such trials. However, well before the IPO, data for the primary outcome measure of the Phase 2 clinical trial had already exposed serlopitant as ineffective and having little or no prospect of Phase 3 clinical trials or approval by the U.S. Federal Drug Administration. On April 8, 2018, Menlo revealed that the data it collected before the IPO did not meet the efficacy endpoints and its drug was therefore not effective. Menlo shares currently trade at only $5.55 per share — a 67% decline from the IPO price.

Menlo Shareholders Have Legal Options

Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.

Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.

Attorney Advertising. Past results do not guarantee a similar outcome.

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