Shareholder Rights Law Firm Johnson & Weaver, LLP is investigating potential violations of the federal securities laws by Chiasma, Inc. and certain of its officers and directors. Chiasma is a late-stage biopharmaceutical company that focuses on developing and commercializing oral forms of therapies for patients suffering from orphan diseases.
Specifically, Johnson & Weaver’s investigation seeks to determine whether the company’s filings with the U.S. Securities and Exchange Commission in connection with its July 2015 initial public stock offering (IPO) contained untrue statements of material facts or omitted to state other facts necessary to make the statements made therein not misleading concerning the company’s business and financial prospects.
In July 2015, Chiasma offered more than 6,300,000 shares of its common stock at $16.00 per share in connection with its IPO. Chiasma shares are plunging and were trading below $4.50 per share during pre-market trading on April 18, 2016. The stock dropped following the FDA rejection of the company’s drug to treat acromegaly, a rare disease of the pituitary gland.