Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against Verrica Pharmaceuticals Inc. (“Verrica” or "the Company") (NASDAQ: VRCA) and certain of its officers, on behalf of shareholders who purchased or otherwise acquired Verrica securities between September 16, 2019 and June 29, 2020, inclusive (the ''Class Period''). Such investors are encouraged to join this case by visiting the firm’s site: www.bgandg.com/vrca.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that:(1) the Company’s proprietary applicator used for VP-102 posed certain safety risks if the instructions were not properly followed; (2) as a result, Verrica would incorporate certain user features to mitigate the safety risk; (3) the addition of the user feature would require additional testing for stability supportive data; (4) as a result of the foregoing, regulatory approval for VP-102 was reasonably likely to be delayed; and (5) 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.
On June 29, 2020, Verrica announced that it received a letter from the U.S. Food and Drug Administration (“FDA”) as part of the FDA’s ongoing review of the Company’s New Drug Application for VP-102 (cantharidin 0.7% topical solution), Verrica’s lead product candidate for the treatment of molluscum contagiosum. According to the Company, the letter cited deficiencies that preclude discussion of labeling and post-marketing requirements/commitments at this time. While Verrica stated that the letter did not specify any particular items, it noted that the FDA’s periodic requests for additional information pertained to chemistry, manufacturing, and control aspects of the drug-device combination. The Company also stated that its ability to address the requests had been “significantly impacted” by COVID-19 disruptions. Following this announcement, Verrica’s stock price fell $3.06 per share, or 21.75%, to close at $11.01 per share on June 30, 2020.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm’s site: www.bgandg.com/vrca or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Verrica you have until September 14, 2020 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
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