Market Overview

Robbins Geller Rudman & Dowd LLP Announces a Securities Case Has Been Filed on Behalf of Purchasers of Tetraphase Pharmaceuticals, Inc. Securities

Share:

Robbins
Geller Rudman & Dowd LLP
announces that a securities class
action case was filed on behalf of purchasers of Tetraphase
Pharmaceuticals, Inc. (NASDAQ:TTPH) securities between March 8, 2017 and
February 13, 2018 (the "Class Period"), including investors that
acquired securities pursuant and/or traceable to the Company's July 27,
2017 secondary public offering. This action was filed in the U.S.
District Court for the Southern District of New York and is captioned Garity
v. Tetraphase Pharmaceuticals, Inc.
, No. 1:18-cv-6797, and is
assigned to Judge Engelmayer.

The Private Securities Litigation Reform Act of 1995 permits any
investor who purchased Tetraphase securities during the Class Period to
seek appointment as lead plaintiff. A lead plaintiff acts on behalf of
all other class members in directing the litigation. The lead plaintiff
can select a law firm of its choice. An investor's ability to share in
any potential future recovery is not dependent upon serving as lead
plaintiff. If you wish to serve as lead plaintiff or have questions
concerning your rights, please contact Mary
Blasy
of Robbins Geller at 800/449-4900 or 619/231-1058, or via
e-mail at djr@rgrdlaw.com. Lead
plaintiff motions must be filed with the court no later than 60 days
from July 27, 2018.

The complaint charges Tetraphase, certain of its officers and directors,
and underwriters of its July 27, 2017 secondary public offering ("SPO")
with violations of the Securities Act of 1933 and/or the Securities
Exchange Act of 1934 by issuing materially false and misleading
statements and/or failing to disclose adverse facts about the Company's
business, operations, and prospects. Specifically, defendants failed to
disclose that Tetraphase was increasing the patient enrollment in its
IGNITE3 trial for its lead product candidate eravacycline for the
treatment of complicated urinary tract infections ("cUTIs"), from 1,000
patients to 1,200 patients to meet the trial's primary endpoints (within
the 10% non-inferiority margin), and that the enrollment of more
patients in the trial indicated that the existing population was
inadequate to meet the trial's primary endpoints. As a result of
defendants' false statements and/or omissions, Tetraphase securities
traded at artificially inflated prices during the Class Period, with the
price of Tetraphase stock reaching a high of more than $9 per share.

On July 26, 2017, Tetraphase announced that it had commenced the
underwritten offering of 10 million shares of its common stock at $6.50
per share pursuant to a registration statement and prospectus supplement
filed on July 27, 2017. The net proceeds from the SPO, which amounted to
approximately $70 million, were to be used to fund the IGNITE3 trial for
eravacycline.

On February 13, 2018, at market close, Tetraphase announced the top-line
results from the IGNITE3 trial of eravacycline for the treatment of
cUTIs. The Company announced that the drug did not achieve its
co-primary endpoints in the trial of "responder rate (a combination of
clinical cure and microbiological success) in the microbiologic
intent-to-treat . . . population at the end-of-IV . . . treatment visit
and at the test-of-cure . . . visit, which were evaluated using a 10%
non-inferiority margin." On this news, the price of Tetraphase stock
declined more than 60% to close at $2.15 per share on February 14, 2018.

Then, on March 6, 2018, when Tetraphase announced its fourth quarter and
year-end financial results, it stated that it did not plan to further
evaluate eravacycline for the treatment of cUTIs and had ceased its
development of an oral formulation of eravacycline.

Robbins Geller is one of the world's leading law firms representing
investors in securities litigation. With 200 lawyers in 10 offices,
Robbins Geller has obtained many of the largest securities class action
recoveries in history. For five consecutive years, ISS Securities Class
Action Services has ranked the Firm in its annual SCAS Top 50 Report as
one of the top law firms in both the amount recovered for shareholders
and the total number of class action settlements. Robbins Geller
attorneys have helped shape the securities laws and recovered tens of
billions of dollars on behalf of aggrieved victims. Beyond securing
financial recoveries for defrauded investors, Robbins Geller also
specializes in implementing corporate governance reforms, helping to
improve the financial markets for investors worldwide. Please visit http://www.rgrdlaw.com
for more information.

View Comments and Join the Discussion!