INVESTOR ALERT: Edelson Lechtzin LLP is Investigating Securities Fraud Claims on Behalf of Humanigen, Inc. (NASDAQ: HGEN) Shareholders
NEWTOWN, PA, September 6, 2022 — The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of all purchasers of Humanigen, Inc. (“Humanigen” or the “Company”) (NASDAQ: HGEN) common stock between May 28, 2021, and July 12, 2022, inclusive (the “Class Period”).
Investors who purchased Humanigen, Inc. common stock during the Class Period may move the U.S. District Court for the District of New Jersey to appoint them as lead plaintiff no later than October 25, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Investors who wish to discuss the lead plaintiff selection process should contact Edelson Lechtzin LLP, toll free at 844-696-7492, or by e-mail at [email protected].
Background on the Humanigen, Inc. Securities Class Action
Humanigen, Inc. is a clinical-stage biopharmaceutical company that focuses on preventing and treating an immune hyper-response called “cytokine storm,” a physiological reaction in which the immune system causes an uncontrolled and excessive release of pro-inflammatory signaling molecules called cytokines, which in large quantities can cause multisystem organ failure and death. Humanigen’s lead product candidate is its proprietary antibody, lenzilumab, which is under development as a treatment for cytokine storm associated with COVID-19.
The Complaint alleges that, throughout the Class Period, Humanigen and certain of its officers made false and misleading statements related to the Company’s business, operations, and prospects. Specifically, Defendants made false and misleading statements or failed to disclose that: (i) lenzilumab was less effective in treating hospitalized COVID-19 patients than the Company represented; (ii) as a result, the FDA was unlikely to approve the lenzilumab and the ACTIV-5/BET-B study was unlikely to meet its primary endpoint; (iii) thus, lenzilumab’s clinical and commercial prospects were overstated. As a result, Humanigen’s public statements during the Class Period were materially false and misleading.
On September 9, 2021, Humanigen issued a press release announcing that the FDA had rejected the lenzilumab, advising investors that “in its letter, the FDA stated that it was unable to conclude that the known and potential benefits of lenzilumab outweigh the known and potential risks of its use as a treatment for COVID-19. On this news, Humanigen’s stock price fell $7.17 per share, or 47.25%, to close at $7.97 per share on September 9, 2021.
Then, on July 13, 2022, Humanigen disclosed that lenzilumab had failed to show statistical significance on the primary endpoint of the ACTIV-5/BET-B study. On this news, Humanigen stock price fell $2.38 per share, or 79.6%, to close at $0.61 per share on July 13, 2022.
Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Email: [email protected]