Pomerantz Appointed Lead Counsel in AcelRx Pharmaceuticals Securities Litigation

On December 16, 2021, U.S. District Judge Beth Labson Freeman, of the Northern District of California – San Jose Division, appointed Pomerantz LLP as Lead Counsel on behalf of Aaron Sneed and Yaacov Musry, the Lead Plaintiffs in Sneed Jr. v. AcelRx Pharmaceuticals, Inc. et al, 21-cv-4353 (N.D. Cal.), a securities action brought on behalf of a class of defrauded investors concerning allegations that AcelRx Pharmaceuticals, Inc. (“AcelRx” or the “Company”) made false or misleading claims and representations in marketing materials about the risks and efficacy of DSUVIA, its lead product candidate for the treatment of moderate-to-severe acute pain.

AcelRx is a specialty pharmaceutical company that focuses on the development and commercialization of therapies for the treatment of acute pain. 

On November 2, 2018, AcelRx announced that the U.S. Food and Drug Administration (“FDA”) had approved DSUVIA for the management of acute pain in adults that is severe enough to require an opioid analgesic in certified medically supervised healthcare settings, such as hospitals, surgical centers, and emergency departments.

Allegations against AcelRx include that: (i) the Company had deficient disclosure controls and procedures with respect to its marketing of DSUVIA; (ii) as a result, AcelRx had been making false or misleading claims and representations about the risks and efficacy of DSUVIA in certain advertisements and displays; and (iii) the foregoing conduct subjected the Company to increased regulatory scrutiny and enforcement.

On February 16, 2021, AcelRx disclosed that, on February 11, 2021, it had received a warning letter from the FDA concerning promotional claims made regarding DSUVIA. Specifically, the FDA stated that promotional communications, including a banner and display, made false or misleading claims and representations about the risks and efficacy of DSUVIA, and thus “misbrand DSUVIA within the meaning of the Federal Food, Drug and Cosmetic Act (FD&C Act) and make its distribution violative.” The warning letter requested that AcelRx “cease any violations of the FD&C Act” and submit a written response to the letter within 15 days from the date of receipt.

On this news, AcelRx’s share price fell $0.21 per share, or 8.37%, to close at $2.30 per share on February 16, 2021.