Stockholders File Securities Class Action Against Agile Therapeutics

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Women’s healthcare products company Agile Therapeutics, Inc. and its chief executive and medical officers are the defendants in a proposed class action alleging the parties violated federal securities law. The 22-page lawsuit out of New Jersey claims the defendants failed to disclose to the U.S. Securities and Exchange Commission (SEC) “material adverse facts about the company’s business, operations, and prospects.” Kept from the SEC, the lawsuit alleges, was that the defendants’ Twirla contraceptive patch had an unfavorable efficacy rating, and that more than half of the patients in the product’s “Secure” Phase 3 Study had dropped out early. As a result of the high discontinuity rate, the complaint continues, the FDA would likely not approve the Twirla product’s marketing application, harming the defendants’ bottom line and stockholders’ outlooks.

News of the aforementioned events reportedly led Agile stock prices to sink nearly 50 percent on “unusually heavy trading volume.”