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SYNERGY PHARMACEUTICALS, INC. INVESTOR ALERT: 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 New York against Synergy…

Lead Plaintiff Deadline is April 10, 2018 

NEW YORK, March 16, 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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