The complaint further alleges that 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) Acer lacked sufficient data to support filing EDSIVO's NDA with the FDA for the treatment of vEDS; (ii) the Ong Trial was an inadequate and ill-controlled clinical study by FDA standards, and was comprised of an insufficiently small group size to support EDSIVO's NDA; (iii) consequently, the FDA would likely reject EDSIVO's NDA; and (iv) as a result, the Company's public statements were materially false and misleading at all relevant times. On June 25, 2019, Acer issued a press release titled "Acer Therapeutics Receives Complete Response Letter from U.S. FDA for use of EDSIVO (celiprolol) in vEDS" Patients (the "June 2019 Press Release"). In the June 2019 Press Release, Acer disclosed receipt of a Complete Response Letter ("CRL") from the FDA regarding its NDA for EDSIVO for the treatment of vEDS. Acer advised investors that "[t]he CRL states that it will be necessary to conduct an adequate and well-controlled trial to determine whether celiprolol reduces the risk of clinical events in patients with vEDS" and that "Acer plans to request a meeting to discuss the FDA's response." That same day, news sources reported that the small group size of the Ong Trial had raised questions among experts about the adequacy of EDSIVO's trial results.

The complaint alleges that throughout the class period defendants made false and/or misleading statements and/or failed to disclose that: (1) Realogy was engaged in anticompetitive behavior by requiring property sellers to pay the commissions of a buyer's broker at an inflated rate; (2) Realogy's anticompetitive actions would prompt the U.S. Department of Justice to open an antitrust investigation into the real estate industry's practices regarding brokers' commissions; and (3) as a result, defendants' statements about the Realogy's business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.

According to the complaint, throughout the class period defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company's business, operations, and prospects.  Specifically, defendants failed to disclose that: (1)  the company aggressively increased prices to mask lower sales; (2)  the company's pricing alienated customers and threatened the company's future growth; (3)  ambulatory surgery centers form a significant part of the market for the company's products; (4) such centers were especially sensitive to price increases; (5) the company was dependent on a small number of surgeons whom the company paid to generate sales; (6) company's consignment model for inventory was reasonably likely to lead to channel stuffing; (7) the company offered purchase incentives to sales representatives to encourage channel stuffing; (8) the company's sales representatives were encouraged to backdate revenue to artificially inflate metrics; (9) the company lacked adequate internal controls to prevent such channel stuffing and backdating of revenue; (10) the company's key operating metrics, such as number of active accounts, were overstated; and (11) as a result of the foregoing, defendants' positive statements about the company's business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.

Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information about Bragar Eagel & Squire, P.C. please go to www.bespc.com.  Attorney advertising.  Prior results do not guarantee similar outcomes. 

Contacts
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
[email protected]
www.bespc.com