Former United States Securities and Exchange Commission attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, and the securities litigation firm of Powers Taylor, LLP announce that the firms are investigating legal claims against the officers and Board of Directors of Chelsea Therapeutics International, Ltd. (“Chelsea” or “CHTP”) (NASDAQ: CHTP) related to potential securities violations between June 9, 2011 and February 17, 2012 (the “Class Period”). If you are an affected investor and you want to learn more about the lawsuit or join the action, contact Patrick Powers at Powers Taylor, LLP, toll free (877) 728-9607, via e-mail at firstname.lastname@example.org, or Willie Briscoe at The Briscoe Law Firm, PLLC, (214) 706-9314, or via email at WBriscoe@TheBriscoeLawFirm.com. There is no cost or fee to you. In a recently filed federal class action complaint, Chelsea and certain of its officers and directors were charged with violating the Securities Exchange Act of 1934. Chelsea is a biopharmaceutical company that had been developing the drug Northera (“Droxidopa”) for use in treating neurogenic orthostatic hypotension (“NOH”) in patients with primary autonomic failure, including Parkinson’s disease. The complaint alleges that during the Class Period, defendants made material misstatements and omissions concerning (i) the safety and efficacy of Droxidopa for patients with NOH; (ii) the results of the Phase III testing of Droxidopa for patients with NOH; and (iii) the post-marketing events in Japan and the likelihood of FDA approval of Droxidopa for patients with NOH in light of the known adverse material facts concerning Droxidopa for patients with NOH. It is further alleged that these misstatements and omissions artificially inflated Chelsea’s common stock price during the Class Period, so that when the true facts concerning the safety and efficacy of Droxidopa were revealed, Chelsea’s common stock price declined dramatically. Specifically, Chelsea’s stock price dropped from $4.99 per share on February 13, 2012 to $2.64 per share on February 21, 2012.
According to shareholder rights attorney Willie Briscoe, “The recent revelations about Chelsea’s alleged misrepresentations regarding its business and financial status, including the safety and efficacy of Droxidopa, are particularly troubling. This has led our firms to investigate possible breaches of fiduciary duties and other violations of state law by Chelsea’s officers and directors. Based on our investigation, we are prepared to institute litigation to preserve the company and the value of Chelsea/CHTP stock for all shareholders.”The Briscoe Law Firm, PLLC is a full service business litigation, commercial transaction, and public advocacy firm with more than 20 years of experience in complex litigation and transactional matters. Powers Taylor, LLP is a boutique litigation law firm that handles a variety of complex business litigation matters, including claims of investor and stockholder fraud, shareholder oppression, shareholder derivative suits, and security class actions.