Bragar Eagel & Squire, PC investigates

NEW YORK, May 26, 2024 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, is investigating potential claims against Verrica Pharmaceuticals, Inc. (NASDAQ: VRCA) on behalf of long-term shareholders following a class action lawsuit against Verrica with a class period from May 28, 2021 to May 24, 2022. Our investigation concerns whether Verrica’s board of directors breached its fiduciary duty to the company.

In December 2020, Verrica submitted its New Drug Application (“NDA”) to the U.S. Food and Drug Administration (“FDA”) seeking regulatory approval of VP-102 for the treatment of molluscum.

On September 20, 2021, after market close, Verrica announced the receipt of a Complete Response Letter (“CRL”) due to deficiencies at a Verrica contract manufacturer facility related to the Company’s NDA.

On this news, the Company’s stock price fell $1.00, or 8.3%, to close at $11.03 per share on September 21, 2021, amid unusually heavy trading volume.

In November 2021, Verrica resubmitted the NDA for VP-102, claiming that “the resubmission addresses the successful remediation of inspection deficiencies” at the manufacturing facility.

Then, on May 24, 2022, after the market closed, Verrica announced receipt of another Complete Response Letter regarding the VP-102 NDA, citing “deficiencies identified during a general follow-up inspection of Sterling Pharmaceuticals Services, LLC (Sterling), the contract manufacturing company (CMO) that manufactures Verrica’s drug product in bulk solution.”

On this news, the Company’s shares fell $3.55, or 63.8%, to close at $2.01 per share on May 25, 2022, amid unusually heavy trading volume.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and failed to disclose material adverse facts about the Company’s business, operations and prospects. Specifically, Defendants failed to disclose to investors: (1) that there were manufacturing defects at the facility where Verrica’s contract manufacturer produced the bulk solution for VP-102; (2) that these defects were not corrected when Verrica resubmitted its NDA for VP-102 for Molluscum; (3) that this posed significant risks to Verrica’s ability to obtain regulatory approval of VP-102 for Molluscum; and (4) that as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations and prospects were materially misleading and/or lacked a reasonable basis.

If you are a long-term Verrica shareholder, have information, would like to learn more about these claims, or have any questions about this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at [email protected], by phone at (212) 355-4648, or by completing this contact form. There is no cost or obligation to you.

About Bragar Eagel & Squire, PC:

Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation in state and federal courts across the country. For more information about the firm, visit www.bespc.com. Attorney advertising. Past results do not guarantee similar results.

Contact information:

Bragar Eagle & Squire, PC
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
[email protected]
www.bespc.com