NEW YORK, June 09, 2021 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of Verus International, Inc. (Other OTC: VRUS) and Frequency Pharmaceuticals, Inc. (NASDAQ: FREQ). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
Verus International, Inc. (Other OTC: VRUS)
Class Period: June 17, 2019 to October 8, 2020
Lead Plaintiff Deadline: June 22, 2021
Verus purports to be a multi-line consumer packaged goods company, which develops branded product lines in the U.S. and globally. Verus was purportedly the fourth fastest growing consumer products food company at the end of 2019, which included its acquisitions of the Big League Foods and a controlling interest in NutriBrands.
In order to stem the Company’s reeling stock price, which had dipped below $0.01 per share, defendants represented that Verus seized the opportunity presented by the COVID-19 pandemic. On April 3, 2020, Verus announced the acquisition of a controlling 51% interest in ZC Top Apparel Manufacturing, Inc., (“ZTAM”), a purported Philippines-based manufacturer of reusable N95 fabric masks and biohazard suits. According to the press release, Verus was “providing the funding and other resources” to begin fulfilling pending governmental orders on an expedited basis and that “protective gear could eclipse all of [Verus’s] existing revenue sources.”
On this news, the Company’s stock price rose from $0.014 to a close of $0.018 on April 3, 2020 following the announcement. Over the next few days, the Company’s stock price continued to climb, closing at $0.021 on April 6, 2020.
However, in the weeks and months that followed, the Company’s stock price declined as the truth was slowly revealed. First, Verus revealed that rollout of sample masks and other PPE were encountering “logistical issues.” Second, the Company needed to secure a facility in Vietnam, seemingly unrelated to ZTAM, to produce sample masks months after the announcement. Third, ZTAM Chief Executive Officer (“CEO”) Ronald Ian Bilang (“Bilang”) cryptically tweeted about a potential escalation of regulatory investigations, involvement of the Office of International Affairs (“OIA”) and continued deafening silence from Verus and defendants.
Finally, on October 8, 2020, Verus announced that the Company issued a “Repayment and Notice of Rescission of Transaction” to ZTAM, as a result of “failure of contractual performance and breach of contract.” According to the press release, ZTAM did not register Verus’s “controlling interest of 51%” as required under the term sheet dated April 3, 2020.
At the time of this announcement, the Company’s stock price closed at just $0.002 per share, a total decline 90.5% from when Verus announced its controlling interest in ZTAM.
For more information on the Verus class action go to: https://bespc.com/cases/VRUS
Frequency Therapeutics, Inc. (NASDAQ: FREQ)
Class Period: November 16, 2020 and March 22, 2021
Lead Plaintiff Deadline: August 2, 2021
Frequency Therapeutics has conducted several clinical studies evaluating the safety and effectiveness of FX-322, the most significant which was a Phase 2a study that began in October 2019.
In April 2020, Frequency’s Chief Executive Officer (“CEO”), David L. Lucchino, began selling his shares of Frequency, totaling over 350,000 shares sold and earning over $10.5 million.
On March 23, 2021, before the market opened, Frequency disclosed in a press release disappointing interim results of the Phase 2a study, revealing that subjects with mild to moderate SNHL did not demonstrate improvements in hearing measures versus placebo.
On this news, Frequency’s shares fell $28.30, or 78%, to close at $7.99, thereby damaging investors.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose that: (1) Frequency’s development and commercialization of a hearing loss treatment titled “FX-322” was not producing the results desired by Frequency; (2) FX-322’s ongoing clinical study was not as positive as Frequency portrayed it; and (3) 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. When the true details entered the market, the lawsuit claims that investors suffered damages.
For more information on the Frequency class action go to: https://bespc.com/cases/FREQ
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. 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, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
Marion Passmore, Esq.