A lawsuit was filed on behalf of investors in Kiromic BioPharma, Inc. (NASDAQ:KRBP) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 08/19/2022 -- An investor, who purchased NASDAQ: KRBP shares, filed a lawsuit against Kiromic BioPharma, Inc over alleged violations of Federal Securities Laws by Kiromic BioPharma, Inc. in connection with certain allegedly false and misleading statements made between June 25, 2021 and August 13, 2021 and in connection with The Company's public offering closed on July 2, 2021 (the Offering).
Investors who purchased shares of Kiromic BioPharma, Inc. (NASDAQ: KRBP) have certain options and for certain investors are short and strict deadlines running. Deadline: October 4, 2022. NASDAQ: KRBP investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
Houston, TX based Kiromic BioPharma, Inc., a target discovery and gene editing company, focuses on developing immuno-oncology therapeutics for the treatment of blood cancers and solid tumors.
On or around October 16, 2020, Kiromic BioPharma, Inc conducted its initial public offering ("IPO"), selling 1.25 million shares of common stock priced at $12.00 per share.
The Company's secondary public offering closed on July 2, 2021 (the "Offering") and was conducted pursuant to a registration statement filed with the SEC on June 25, 2021 ("Registration Statement") and a final prospectus dated June 29, 2021 (the "Prospectus," with the Registration Statement, the "Offering Documents").
Then, on July 16, 2021, Kiromic BioPharma, Inc disclosed that, following the May 2021 submission of two Investigational New Drug Applications ("INDs") to the U.S. Food and Drug Administration ("FDA") "for the first-in-human off-the-shelf allogeneic CAR-T for Solid Tumors", the "FDA returned with comments on the Company's allogeneic CAR-T products with respect to . . . Tracing of all reagents used in manufacturing . . . Flow chart of manufacturing processes . . . [and] Certificate of Analysis (COA) for the Company's CAR-T products (allogeneic CAR-T)."
Then, on August 13, 2021, Kiromic BioPharma, Inc clarified that the FDA had actually put the INDs on "clinical hold".
Finally, on February 2, 2022, Kiromic BioPharma, Inc disclosed that the Company had commenced an internal investigation based on complaints lodged by its former Chief Financial Officer, who had abruptly departed the Company in October 2021. The internal investigation revealed that the FDA had first informed the Company of the clinical hold on June 16 and June 17, 2021, yet the Company had not disclosed these material facts in its IPO documents. Kiromic BioPharma, Inc admitted that this material omission could subject the Company to liability under the securities laws.
Shares of Kiromic BioPharma, Inc. (NASDAQ: KRBP) declined to as low as $0.57 per share on February 24, 2022.
The plaintiff claims that the Offering Documents failed to disclose that the FDA had, prior to the filing of the Registration Statement and Prospectus, imposed a clinical hold, and in fact, contained statements indicating that it had not. Given that the Offering closed on July 2, 2021, more than thirty (30) days after the Company submitted the IND applications for its two immunotherapy product candidates, investors were assured that no clinical hold had been issued and clinical trials would commence.
Those who purchased shares of Kiromic BioPharma, Inc. (NASDAQ: KRBP) have certain options and should contact the Shareholders Foundation.
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