INVESTOR ALERT: Edelson Lechtzin LLP is Investigating Securities Fraud Claims on Behalf of Kiromic BioPharma, Inc. (NASDAQ: KRBP) Shareholders
NEWTOWN, PA, August 10, 2022 — The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of all purchasers of Kiromic BioPharma, Inc. (“Kiromic” or the “Company”) (NASDAQ: KRBP) (1) common stock pursuant and/or traceable to the Offering Documents and/or (2) securities between June 25, 2021 and August 13, 2021, inclusive (the “Class Period”). The Kiromic BioPharma class action lawsuit was filed in the United States District Court for the Southern District of New York and seeks to recover damages against Defendants for alleged violations of the Securities Act of 1933 and the Securities Exchange Act of 1934.
Investors who purchased Kiromic BioPharma, Inc. common stock during the Class Period may move the U.S. District Court for the Southern District of New York to appoint them as lead plaintiff, no later than October 4, 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]. A copy of the class action complaint can be viewed on Edelson Lechtzin LLP’s website at www.edelson-law.com or HERE
Background on the Kiromic BioPharma Securities Class Action
Kiromic BioPharma describes itself as a target discovery and gene-editing company which utilizes artificial intelligence to create immunotherapy products. At the time of the securities offering, Kiromic BioPharma did not have any immunotherapy products on the market, however it had applications to begin human clinical trials for two new drug candidates – known as Investigational New Drug (“IND”) applications – pending with the Food and Drug Administration (“FDA”). The Offering Documents stated that Kiromic BioPharma could begin clinical trials within 30 days of those IND applications unless the FDA imposed a clinical hold.
The lawsuit alleges that the Offering Documents contained false and misleading statements of material fact and omitted material facts necessary to make statements contained in such filings not misleading, or otherwise failed to make disclosures that would have been required regarding the status of its IND applications.
Among other things, it is alleged that the Offering Documents failed to disclose the FDA had imposed a clinical hold, prior to the filing of the Registration Statement and Prospectus. However, on June 16 and 17, 2021, Kiromic had received communications from the FDA informing the Company that the FDA was placing the IND applications for its two new drug candidates on clinical hold. Rather than including this important information in the Offering Documents, the Company represented that the clinical testing was expected to proceed in the third quarter of 2021. Clinical testing did not proceed in the third quarter of 2021, nor was it likely to given the FDA’s imposition of a clinical hold. As a result of these untrue and misleading statements and the resulting decline in the market value of Kiromic stock, purchasers of Kiromic stock during the Class Period have suffered significant losses.
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]