#USA #New York #Levi & Korsinsky #Securities Fraud #ESSA Pharma

Class Action Lawsuit Against ESSA Pharma Inc.

On February 18, 2025, it was reported by Levi & Korsinsky, LLP that a class action lawsuit has been filed against ESSA Pharma Inc. (NASDAQ: EPIX). This legal action comes as a response to claims of securities law violations that affected investors over a significant period, specifically from December 12, 2023, to October 31, 2024. The suit aims to recover financial losses linked to allegations of misleading statements made by the company's management regarding the efficacy of its lead drug candidate, masofaniten.

Allegations of Securities Fraud

The crux of the lawsuit involves assertions that ESSA Pharma Inc.'s management misled investors about the effectiveness of masofaniten when combined with another treatment, enzalutamide. According to the complaint, the drugs did not provide the anticipated benefits over the latter when administrated in tandem. Furthermore, it is alleged that the results from the M-E Combination Study, which was supposed to evaluate the combined treatment for prostate cancer, were misrepresented; the research was described as unlikely to meet its predefined primary endpoint. This gross misrepresentation created an illusion of robust clinical prospects that were never substantiated.

Each claim indicates that, at all relevant times, the public statements made by ESSA Pharma were materially false, which led to a significant drop in stock prices once the truth became apparent. As shares of ESSA Pharma began to lose their value, investors are now looking for redress through this class action.

What Investors Should Know

Affected investors are encouraged to reach out to Levi & Korsinsky as they continue to investigate potential claims. They have established a straightforward process for investors who believe they may have a case. The firm points out that investors are not obligated to serve as lead plaintiffs to participate in any recovery; they can still gain compensation without bearing out-of-pocket costs.

Potential plaintiffs have until March 25, 2025, to file their claims and request to be appointed as lead plaintiffs under the court's oversight. Participation as a class member is accessible to those who suffered losses attributable to the alleged securities fraud.

Levi & Korsinsky’s Track Record

Levi & Korsinsky has been a distinguished name within the realm of securities litigation for more than 20 years. Over the years, they have successfully recovered hundreds of millions for shareholders affected by corporate malfeasance. Their systematic approach and extensive expertise, backed by a dedicated team of over 70 professionals, position them as a strong advocate for investors embroiled in complex legal disputes arising from incorrect information and corporate misconduct.

The firm is noted for being listed among the top securities litigation firms in the United States, as acknowledged by ISS Securities Class Action Services. Their aptitude in handling such sensitive cases and their commitment to their clients have earned them a reputable standing.

Conclusion

Investors who feel they may have been impacted by the legal issues surrounding ESSA Pharma Inc. are urged to act swiftly. Engaging with legal experts like those at Levi & Korsinsky can provide avenues for recovery and ensure that their concerns are adequately addressed. The ongoing developments in this lawsuit underscore an essential reminder for investors to remain vigilant regarding corporate communications, particularly within the pharmaceutical sector, where misinformation can lead to substantial financial repercussions.