On March 11, 2014, Senomyx, Inc. issued a public statement suggesting that its food ingredient Sweetmyx, or S617, was generally recognized as safe (GRAS). This announcement was repeated throughout the news media, with headlines stating that the FDA had determined that its Sweetmyx product had received a GRAS designation. Senomyx, Inc. stock soared on this news, as investors seemingly believed that PepsiCo.‘s commercial utilization of Sweetmyx was imminent.
On March 12 after the close of the market, the FDA issued a statement that, “in fact, the agency (FDA) had not made this determination nor had it been notified by Senomyx regarding a GRAS determination for this food ingredient…. When making a GRAS self-determination, companies should not state or imply that the FDA has made a GRAS determination on their food ingredients.”
Upon opening on March 13th, the Senomyx, Inc. stock price has fallen on news of the correction.
If you purchased Senomyx, Inc. stock on March 11 or March 12 based upon the misleading statement regarding Sweetmyx having obtained a FDA GRAS designation, we would like to speak with you to discuss a potential claim based upon the false and misleading statement. Please contact us at (212) 385-9700.
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