NEW YORK, — Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Novan, Inc. (“Novan” or the “Company”) (NASDAQ:NOVN) of the January 2, 2017 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Novan stock or options pursuant and/or traceable to Novan’s Registration Statement and Prospectus, issued in connection with the Company’s initial public offering on or about September 26, 2016 (the “IPO”) and/or between September 26, 2016 and January 26, 2017 (the “Class Period”) and would like to discuss your legal rights, click here: www.faruqilaw.com/NOVN. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to[email protected]
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Middle District of North Carolina on behalf of all those who purchased Novan securities pursuant and/or traceable to the IPO and/or throughout the Class Period. The case, Miriyala v. Novan, Inc. et al, No. 1:17-cv-00999 was filed on November 3, 2017.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making materially false and/or misleading statements in the IPO Registration Statement, Prospectus, and throughout the Class Period regarding the Company’s business and outlook specifically regarding the Company’s lead product candidate SB204, a topical gel that targets multiple mechanisms of action for the treatment of acne vulgaris.
Specifically, on January 27, 2017, Novan announced the top-line results of its two Phase 3 clinical trials of SB204. Although the drug hit its goals in one of the trials, it failed to beat a placebo in the other separate Phase 3 study. Then, on June 5, 2017, Novan announced that it was replacing its Chief Executive Officer and co-founder, and that it was laying off 20% of its workforce. Then, on August 2, 2017, the Company disclosed that it would be retreating further from SB204, stating that Novan’s “[p]rimary clinical focus over the next 24 months” would be “antiviral clinical work in EGW and Molluscum” and that the “[a]cne indication and path forward [would] be largely driven by regulatory clarity.”
As a result of these disclosures, Novan’s share price has declined significantly.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Novan’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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