Pomerantz Law Firm Files Class Action Against ESSA Pharma Inc. and Its Executives

Pomerantz Law Firm Files Class Action Against ESSA Pharma

On March 17, 2025, Pomerantz LLP announced the initiation of a class action lawsuit against ESSA Pharma Inc. (NASDAQ: EPIX) and certain of its executives. This development has generated significant attention in the investment community, considering the implications for shareholders and the potential ramifications for the company’s leadership.

Background of the Case

The class action is being filed in the United States District Court for the Eastern District of Wisconsin, under the case number 25-cv-00124. It represents a group comprised of all individuals and entities, excluding the defendants, who acquired shares of ESSA securities between December 12, 2023, and October 31, 2024. The aim of the lawsuit is to recover damages resulting from the defendants’ alleged violations of federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, along with Rule 10b-5.

Investors involved in this action have until March 25, 2025, to file for the position of Lead Plaintiff in the class. Interested parties can access the complaint through the Pomerantz Law Firm's website or by contacting Danielle Peyton directly.

Company Overview

ESSA Pharma Inc. is recognized as a clinical-stage pharmaceutical enterprise that specializes in developing innovative small-molecule drugs tailored for treating prostate cancer. The company’s primary focus has been on masofaniten (EPI-7386), an investigational oral androgen receptor inhibitor critical in addressing the complexities of prostate cancer, particularly castration-resistant prostate cancer (CRPC).

The clinical journey of masofaniten has seen it being evaluated in several trials, including the M-E Combination Study—a Phase 1/2 assessment where masofaniten was tested in tandem with enzalutamide against enzalutamide alone in patients with metastatic CRPC. The Phase 1 portion aimed to identify the appropriate dosage, leading to a recommended Phase 2 combination dose.

Allegations Against Executives

The lawsuit alleges that during the class period, the executives of ESSA made materially false and misleading statements concerning the company's business and prospects. The specific claims highlighted are:
1. The belief that masofaniten combined with enzalutamide would lead to favorable outcomes was overstated.
2. The efficacy of masofaniten in these studies was misrepresented, as it did not provide a significant advantage over enzalutamide monotherapy.
3. The likelihood of the M-E Combination Study meeting its pre-defined primary endpoint was less than stated by the defendants.
4. The company’s executives misrepresented the clinical, regulatory, and commercial viabilities of masofaniten, leading to inflated investor expectations.

On October 31, 2024, ESSA made public its decision to terminate Phase 2 of the M-E Combination Study, citing disappointing efficacy results and assessing that the combination treatment showed no clear superiority over the traditional enzalutamide treatment.

Market Reaction

Following the announcement of the termination of the study, ESSA’s stock suffered a major hit, plummeting by $3.80, which indicates a stark 73.08% decline, closing at $1.40 per share the following day. This dramatic fall highlights the catastrophic impact that such developments can have on investor confidence and the company’s market value.

The Role of Pomerantz LLP

Pomerantz LLP, with its decades-long expertise in the fields of corporate, securities, and antitrust litigation, is leading this class action. The firm has a history of successfully representing victims of corporate misconduct and has recovered billions in damages for class members. Its commitment to fighting for investors’ rights continues to be a hallmark of their practice.

For those interested in the intricacies of securities litigation or affected by the outcomes related to ESSA Pharma, participating in this class action could be a vital step toward seeking justice and potential recovery of financial losses.