New York-based law firm Bragar Eagel & Squire, P.C. has initiated an investigation into biotechnology company Cidara Therapeutics, Inc. following potential claims by stockholders. The firm aims to determine whether Cidara Therapeutics has violated federal securities laws or engaged in any other unlawful business practices.
The investigation stems from Cidara Therapeutics’ recent filing with the Securities and Exchange Commission (SEC) on April 16, 2024. In the filing, the company acknowledged that its previously issued audited consolidated financial statements for the fiscal years 2021 and 2022, along with unaudited condensed consolidated financial statements from the quarterly periods of 2022 and 2023, should no longer be relied upon and require restatement.
Furthermore, Cidara Therapeutics stated that their disclosure controls and procedures were not effective at the reasonable assurance level, and their internal control over financial reporting was also ineffective during the periods covered by the restatement.
This news had a negative impact on the stock price, with Cidara Therapeutics seeing a decline of $1.89 per share, equivalent to 11.46%, and closing at $14.60 on April 16, 2024.
Stockholders who have suffered losses or have information regarding Cidara Therapeutics’ actions are encouraged to contact Brandon Walker or Marion Passmore of Bragar Eagel & Squire, P.C. for further details through email at [email protected] or by phone at (212) 355-4648. There is no cost or obligation associated with participating in the investigation.
Bragar Eagel & Squire, P.C. is a distinguished law firm with offices in New York, California, and South Carolina. Their legal expertise extends to commercial, securities, derivative, and other complex litigation for both individual and institutional investors in state and federal courts nationwide. For additional information about the firm, please visit their website at www.bespc.com.
Please note that this article contains attorney advertising, and past results are not indicative of future outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
[email protected]
www.bespc.com
Based on the information provided in the article, it is evident that Cidara Therapeutics, Inc. is currently under investigation by the law firm Bragar Eagel & Squire, P.C. for potential violations of federal securities laws and other unlawful business practices. The investigation was initiated following Cidara Therapeutics’ recent filing with the Securities and Exchange Commission (SEC) which stated that their previously issued audited consolidated financial statements for the fiscal years 2021 and 2022, as well as their unaudited condensed consolidated financial statements for the quarterly periods of 2022 and 2023, should no longer be relied upon and require restatement. It was further disclosed that the company’s disclosure controls and procedures were ineffective at the reasonable assurance level, and their internal control over financial reporting was also ineffective during the periods covered by the restatement.
As a result of this news, Cidara Therapeutics experienced a decline in its stock price, with a decrease of $1.89 per share (equivalent to 11.46%) and closing at $14.60 on April 16, 2024.
Moving on to the broader market trends, it is important to note that the biotechnology sector is subject to various factors that can impact the performance of companies within it. These factors can include clinical trial outcomes, regulatory approvals, market competition, and market demand for the products or services being offered. In recent years, the biotechnology industry has seen significant growth driven by advancements in medical research and increasing investments in healthcare. However, it is also a highly regulated industry, with strict compliance requirements and close scrutiny by regulatory agencies.
Forecasting the specific impact of the ongoing investigation on Cidara Therapeutics’ market position and future performance is challenging without access to additional information. However, it is worth considering potential consequences such as reputational damage, legal liabilities, regulatory interventions, and investor confidence.
Key challenges or controversies associated with investigations of this nature typically include uncertainties surrounding the outcome and duration of the investigation, potential financial penalties or sanctions, litigation risks, and the impact on shareholder value. Companies under investigation may also face challenges in maintaining customer trust and loyalty during these turbulent times.
Considering the advantages, investigations can help uncover potential violations of laws and regulations, ensuring greater transparency and accountability within the company. If wrongdoing is identified, it can lead to corrective actions and ultimately improve corporate governance practices. Additionally, the resolution of investigations can provide clarity and allow the company to move forward with enhanced compliance measures.
On the other hand, the disadvantages of investigations may include legal costs, negative impact on the company’s reputation, and uncertainties that can create instability in the market. Shareholders may experience financial losses as a result of declining stock prices, and companies may face challenges in attracting new investors or raising capital.
In conclusion, the investigation launched against Cidara Therapeutics raises significant concerns about potential violations of securities laws and unlawful business practices. The impact on the company’s stock price, as well as the ongoing uncertainties associated with the investigation, highlight the challenges and controversies involved. It remains to be seen how this investigation will unfold and its ultimate impact on the company’s market position and performance.
For more information about Bragar Eagel & Squire, P.C., the law firm handling the investigation, you can visit their website at www.bespc.com.