NEW YORK, — Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Genocea Biosciences, Inc. (“Genocea” or the “Company”) (Nasdaq:GNCA) in the United States District Court for the District of Massachusetts on behalf of a class consisting of investors who purchased or otherwise acquired Genocea securities on the open market from May 5, 2017, and September 25, 2017, inclusive (the “Class Period”), seeking to recover compensable damages caused by Defendants’ violations of the Securities Exchange Act of 1934.
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company’s finances were insufficient to support Phase 3 trials of GEN-003; (ii) accordingly, the Company had overstated the prospects for GEN-003; and (iii) as a result of the foregoing, the Company’s public statements were materially false and misleading at all relevant times.
On September 25, 2017, post-market, the Company disclosed that it was halting spending and activities on GEN-003 and exploring strategic alternatives for the drug. The Company also announced that it was cutting 40% of its workforce. On this news, the Company’s share price fell $4.08, or 76.5%, to close at $1.25 on September 26, 2017.
Investors who purchased or otherwise acquired shares during the Class Period should contact the Firm prior to the January 2, 2018 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].
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