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Immunovant, Inc. Class Action Lawsuit

Company Name
Immunovant, Inc.
Stock Symbol
IMVT
Class Period
October 2, 2019 to February 1, 2021
Court
Eastern District of New York

Case Summary

The Immunovant, Inc. class action lawsuit charges Immunovant and certain of its executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers or acquirers of Immunovant securities between October 2, 2019 and February 1, 2021 (the “Class Period”).  The Immunovant class action lawsuit was commenced on February 19, 2021 in the Eastern District of New York and is captioned Pitman v. Immunovant, Inc., No. 21-cv-00918.

Immunovant is a clinical-stage biopharmaceutical company that develops monoclonal antibodies for the treatment of autoimmune diseases.  Immunovant is developing IMVT-1401, a novel fully human monoclonal antibody, which is in Phase IIa clinical trials for the treatment of myasthenia gravis (“MG”) and thyroid eye disease (“TED”), also known as Graves’ ophthalmopathy.  Immunovant has also completed initiation of Phase II clinical trials of IMVT-1401 for the treatment of warm autoimmune hemolytic anemia (“WAIHA”).

On September 29, 2019, Health Sciences Acquisitions Corporation (“HSAC”), then a blank check company, also known as a special purpose acquisition company, entered into an agreement with Immunovant Sciences Ltd. (“Legacy Immunovant”), a private biopharmaceutical company, and shareholders of Legacy Immunovant, to effect a merger between the two entities (the “Merger”).  As a result of the Merger, HSAC acquired all of the issued and outstanding shares of Legacy Immunovant, and Legacy Immunovant became a wholly-owned subsidiary of HSAC.  Upon the closing of the Merger, HSAC changed its name to “Immunovant, Inc.”

The Immunovant class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) HSAC had performed inadequate due diligence into Legacy Immunovant prior to the Merger, and/or ignored or failed to disclose safety issues associated with IMVT-1401; (ii) IMVT-1401 was less safe than Immunovant had led investors to believe, particularly with respect to treating TED and WAIHA; (iii) the foregoing foreseeably diminished IMVT-1401’s prospects for regulatory approval, commercial viability, and profitability; and (iv) as a result, Immunovant’s public statements were materially false and misleading at all relevant times.

On February 2, 2021, Immunovant issued a press release “announc[ing] a voluntary pause of dosing in its ongoing clinical trials for IMVT-1401.”  Immunovant disclosed that it “has become aware of a physiological signal consisting of elevated total cholesterol and LDL [lowdensity lipoproteins] levels in IMVT-1401-treated patients” and “[o]ut of an abundance of caution, Immunovant has decided to voluntarily pause dosing in ongoing clinical studies in both TED and in [WAIHA], in order to inform patients, investigators, and regulators as well as to modify the monitoring program.”  On this news, Immunovant’s stock price fell more than 42%, damaging investors.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For eight consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

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