The lawsuit alleges that defendants issued materially false and misleading statements concerning the safety and efficacy of Zygel, the company's transdermal cannabinoid (“CBD”) gel, for which Zynerba is seeking FDA approval. In particular, the complaint alleges that defendants touted Zygel’s ability to treat children and adolescents with developmental and epileptic encephalopathies (“DEE”) while falsely advised investors that Zygel had presented no adverse events in patients. On September 18, 2019, however, it was finally revealed to investors that 96% of Zygel's patients experienced a treatment emergent adverse event (“TEAE”), 60% of patients experienced a treatment related adverse event (“TRAE”), and 10 patients reported a serious adverse event (“SAE”). On this news, Zynerba's stock price fell $2.46, or almost 22%, in a single trading day, to close at $8.84 per share. The price of Zynerba stock has yet to recover.