STAT+: A new PIPE lawsuit challenges the fairness of sharing confidential, stock-moving information
The fairness of PIPEs, particularly the preferential sharing of confidential, stock-moving information, is now a legal question.
A shareholder is suing Taysha Gene Therapies insiders and a group of health care investment firms for allegedly enriching themselves in a $150 million PIPE transaction that involved delaying the public disclosure of positive results from a gene therapy clinical trial.
The lawsuit, filed earlier this month in the Delaware Court of Chancery, will be closely followed because it potentially upends the sharing of material, nonpublic information between companies and select investors as a mechanism for getting PIPEs transacted.
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