IMPORTANT INVESTOR ALERT FOR ALL OWNERS OF SYNERGY PHARMACEUTICALS, INC.: Wolf Haldenstein Adler Freeman & Herz LLP reminds investors that a securities class action lawsuit has been filed in the United States District Court for the Eastern District of…

Lead Plaintiff Deadline is April 10, 2018

NEW YORK, Feb. 23, 2018 (GLOBE NEWSWIRE) --

Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action lawsuit has been filed in the United States District Court for the Eastern District of New York against Synergy Pharmaceuticals, Inc. (Nasdaq:SGYP) (“Synergy” or the “Company”)  on behalf of purchasers of the Company’s securities between September 5, 2017 and November 14, 2017, inclusive  (Class Period”).

Investors who have incurred losses in shares of Synergy Pharmaceuticals, Inc. are urged to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action on our website, www.whafh.com.

If you have incurred losses in the shares of Synergy Pharmaceuticals, Inc. and would like to assist with the litigation process as a lead plaintiff, you may, no later than April 10, 2018, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights as an investor in Synergy Pharmaceuticals, Inc.

Synergy is a biopharmaceutical company focused on the development and commercialization of therapies to treat gastrointestinal disorders and diseases. 

On September 5, 2017, the Company issued a press release announcing that it had “closed on a $300 million debt financing structured as senior secured loans from CRG LP, a healthcare focused investment firm, and its lender syndicate” (the “CRG Loan”).  At that time, Synergy’s Chief Financial Officer represented to  investors that the CRG Loan was “non-dilutive  financing.”

However, as detailed in the shareholder class action complaint, Synergy and certain of its executive officers failed to disclose that the CRG Loan was subject to various onerous terms and conditions, and made a series of false and misleading statements to investors about the CRG Loan, including:

• its purported non-dilutive  effect;  
   
• its availability; and
   
• its sufficiency to fund the Company’s operations.

On November 9, 2017, Synergy filed a Form 10-Q with the SEC and disclosed the CRG Loan’s terms and conditions.  Specifically, “the terms of the CRG Loan were dilutive to the outstanding equity interests of shareholders,” and the CRG Loan by itself could not and would not provide Synergy with sufficient financial flexibility or funding.  Following this news, shares of the Company’s common stock declined over 8.4%, to  close at $2.72 per share on November 10, 2017.

Subsequently, on November 13, 2017, the Company announced that it had priced an equity offering of common stock and warrants.  Following this additional news, shares of the Company’s common stock continued to decline, and closed as low as $1.89 per share on November 15, 2017.

Wolf Haldenstein Adler Freeman & Herz LLP has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country.  The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego.  The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.

If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at classmember@whafh.com, or visit our website at www.whafh.com.

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Contact:

Wolf Haldenstein Adler Freeman & Herz LLP
Kevin Cooper, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: gstone@whafh.com, kcooper@whafh.com or classmember@whafh.com
Tel: (800) 575-0735 or (212) 545-4774

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