Robbins Umeda LLP Announces an Investigation of NeurogesX, Inc.
SAN DIEGO -- May 03, 2012
Shareholder rights firm Robbins Umeda LLP is investigating possible breaches
of fiduciary duty and other violations of the law by certain officers and
directors at NeurogesX, Inc. (NASDAQ: NGSX). Concerned shareholders who would
like more information about their rights and potential remedies can contact
attorney Gregory E. Del Gaizo at (800) 350-6003, firstname.lastname@example.org, or via
the shareholder information form on the firm's website.
Robbins Umeda LLP is investigating whether officers and directors of NeurogesX
breached their fiduciary duties to shareholders and the company by causing the
company to issue improper statements related to NeurogesX's business and
operations. In particular, the company failed to disclose adverse facts
concerning the employment of Dr. Jeffrey K. Tobias, the company's former Chief
Medical Officer and Executive Vice President of Research and Development.
Tobias oversaw all the research and development for the drugs in NeurogesX's
portfolio, and therefore was a crucial officer for NeurogesX. Despite Tobias's
importance to NeurogesX, representatives of the company failed to disclose and
actively concealed the fact that Tobias was seeking other employment.
As a result of these actions, NeurogesX's stock traded at artificially high
prices. On September 27, 2011, the company announced Tobias' resignation. Upon
this announcement, NeurogesX stock value declined almost 40%. By October 3,
2011, the company had lost over half of its market value.
Robbins Umeda LLP highlights that NeurogesX shareholders have the option to
file a shareholder derivative action to hold those officers and directors
accountable for damaging the company. Remedies commonly sought in derivative
actions include corporate governance reforms designed to prevent future
misconduct, removal of officers or directors whose misconduct injured the
corporation, and monetary payments in the form of damages and disgorgement of
Robbins Umeda LLP is a nationally recognized leader in securities litigation
and shareholder rights law. The firm represents individual and institutional
investors in shareholder derivative and securities class action lawsuits, and
has helped its clients realize more than $1 billion of value for themselves
and the companies in which they have invested. For more information, please go
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Robbins Umeda LLP
Gregory E. Del Gaizo
(619) 525-3990 or Toll Free (800) 350-6003
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