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