SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Synergy Pharmaceuticals Inc. - SGYP
NEW YORK, NY / ACCESSWIRE / February 20, 2019 / Pomerantz LLP is investigating claims on behalf of investors of Synergy Pharmaceuticals Inc. (''Synergy'' or the ''Company'') (SGYP). Such investors are advised to contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888-476-6529, ext. 9980.
The investigation concerns whether Synergy and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On September 5, 2017, Synergy entered into a $300 million senior secured loan from CRG Partners III L.P. (the ''CRG Loan''), which in its initial incarnation provided an immediate cash infusion of $100 million with a second $100 million tranche of financing less than six months later, on or before February 28, 2018 and a third tranche of up to $100 million in the following thirteen months.
Then, on October 25, 2018, Synergy disclosed that the Company had attempted to renegotiate the CRG Loan, but that its efforts to further amend the agreement with respect to financial and revenue covenants had been unsuccessful, that the Company might not be able to satisfy the minimum liquidity covenant in the term loan agreement or secure alternative financing, and that as a result, Synergy might be forced to default on the term loan agreement. With respect to TRULANCE, the Company's lead product, Synergy also disclosed that uptake in 2018 was slower than anticipated due to a highly competitive market access environment and slower than anticipated overall market growth. As a result, the Company was projecting total net sales of TRULANCE for 2018 to be between $42 and $47 million, significantly below the minimum revenue covenant of $61 million as set forth in the term loan agreement. Synergy further disclosed that if TRULANCE sales failed to meet that threshold, the Company would be subject to prepayment penalties equal to $38 million to $51 million.
Following this news, Synergy's stock price fell $0.97 per share, or 69.3%, to close at $0.43 per share on October 26, 2018.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
SOURCE: Pomerantz LLP
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