Chiasma Securities Settlement
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This website has been established to provide general information related to the proposed settlement of the lawsuit referred to as John J. Gerneth v. Chiasma, Inc., No. 1:16-cv-11082-DJC (the “Litigation”), and is pending before the Honorable Denise J. Casper in the United States District Court for the District of Massachusetts (the “Court”). The capitalized terms used on this website, and not otherwise defined, shall have the same meanings ascribed to them in the Stipulation of Settlement (the "Stipulation") dated February 27, 2019, which can be found and downloaded by clicking on the Case Documents tab above.

The law firms of Robbins Geller Rudman & Dowd LLP and Johnson Fistel, LLP represent you and other Class Members. You will not be charged for these lawyers. They will be paid from the Settlement Fund to the extent the Court approves their application for fees and expenses. If you want to be represented by your own lawyer, you may hire one at your own expense.


This is a securities class action brought against Chiasma, Inc. ("Chiasma") and certain of its officers and directors and the underwriters of Chiasma's initial public offering ("IPO") (collectively "Defendants") for alleged violations of Sections 11 and 15 of the Securities Act of 1933 by issuing materially false and misleading statements and omitting material information in the Registration Statement and Prospectus for Chiasma’s July 15, 2015 IPO.   More specifically, Lead Plaintiff alleges that Defendants failed to disclose material adverse information concerning Chiasma's new drug application for Mycapssa, and failed to provide meaningful risk warnings to potential investors in the Registration Statement for the IPO. 

If you purchased or otherwise acquired Chiasma common stock pursuant or traceable to the Registration Statement filed in connection with Chiasma’s IPO, you are a Class Member.  For purposes of this Settlement only, you are a Class Member if you purchased or otherwise acquired Chiasma common stock on or before June 9, 2016.  As set forth in the Stipulation, excluded from the Class are:  Defendants, the present and former officers and directors of Defendants, members of the immediate family of any individual Defendant and the legal representatives, heirs, successors, or assigns of any of the foregoing, and any entity in which Defendants have or had a controlling interest during the Class Period.  Also excluded from the Class is any Person who timely and validly requests exclusion pursuant to the requirements described in the Notice of Pendency and Proposed Settlement of Class Action (the "Notice").


The proposed Settlement will create a cash settlement fund of $18,750,000 (the “Settlement Fund”), plus any interest that may accrue thereon less certain deductions.

The Settlement Fund, subject to deduction for, among other things, costs of class notice and administration and certain taxes and tax-related expenses, as well as attorneys’ fees and expenses, and the amount to Lead Plaintiff in connection with his representation of the Class, as approved by the Court, will be available for distribution to Class Members. Your recovery from this fund will depend on a number of variables, including how many shares of Chiasma common stock you purchased or acquired pursuant or traceable to Chiasma's IPO, the timing of your purchases and any sales, and how many other Class Members make claims. 


Although the information on this website is intended to assist you, it does not replace the information contained in the Notice and the Stipulation.


SUBMIT A PROOF OF CLAIM File a claim. This is the only way to be eligible to receive a payment from the Settlement.  Proofs of Claim must be postmarked (if mailed) or received (if submitted online) on or before August 2, 2019.
EXCLUDE YOURSELF FROM THE CLASS  Receive no payment.  This is the only option that, assuming your claim is timely brought, potentially allows you to ever be part of any other lawsuit against any of the Defendants or any other Released Defendant Parties concerning the Released Claims.  Defendants and the other Released Defendant Parties will have the right to assert any and all defenses they may have to any claims that you seek to assert including, without limitation, the defense that any such claims are untimely under applicable statutes of limitation and statutes of repose. 
OBJECT TO THE SETTLEMENT, THE PLAN OF ALLOCATION, AND/OR THE APPLICATION FOR ATTORNEYS’ FEES AND EXPENSES Write to the Court about why you do not like the Settlement, the Plan of Allocation and/or the request for attorneys' fees and expenses.  You will still be a Member of the Class. 
APPEAR AT THE HEARING Ask to speak in Court about the fairness of the Settlement.  If you submit a written objection, you may (but do not have to) attend the hearing. 
 DO NOTHING AT ALL Receive no payment.  You will, however, still be a Member of the Class, which means that you give up your right to ever be a part of any other lawsuit against the Defendants or any other Released Defendant Parties about the legal claims being resolved by this Settlement and you will be bound by any judgments or orders entered by the Court in the Litigation.


Submit Proof of Claim August 2, 2019
Request Exclusion June 6, 2019
Submit Written Objection June 6, 2019
Submit Notice of Intention to Appear June 6, 2019
Settlement Hearing  June 27, 2019, at 11:00 a.m. EST