PDF

MabVax Therapeutics Holdings

41 days left to seek lead plaintiff status

Case Summary

Company Name
MabVax Therapeutics Holdings
Stock Symbol
MBVX
Class Period
March 14, 2016 to May 18, 2018
Motion Deadline
August 3, 2018
Court
Southern District of California

The complaint charges MabVax and certain of its officers with violations of the Securities Exchange Act of 1934.  MabVax through its subsidiaries develops human antibody-based products and vaccines to address unmet medical needs.

The complaint alleges that throughout the Class Period, defendants made false and misleading statements and/or failed to disclose material adverse facts about the Company’s business, operations and prospects.  Specifically, according to the complaint, defendants failed to disclose that the Company’s internal controls over financial reporting were materially weak and deficient, which led to the Company incorrectly calculating and reporting beneficial ownership of MabVax shares and permitting improper influence or control over MabVax and/or the Company’s officers and directors by certain shareholders.  As a result of defendants’ failure to disclose this adverse information to investors, the price of MabVax common stock was artificially inflated during the Class Period to as high as $18 per share.

On January 30, 2018, the Company filed a Current Report on Form 8-K disclosing an investigation by the SEC “relating to certain of the Company’s registration statements.”  On this news, the Company’s share price fell nearly 18%, to close at $2.19 per share on January 30, 2018. 

Then on May 21, 2018, MabVax filed a Current Report on Form 8-K regarding the SEC’s investigation into the Company and its officers’ and directors’ potential violations of federal securities laws, as well as an investigation into potential violations of federal securities laws by various holders of the Company’s securities.  The Form 8-K stated that “the SEC Investigation pertains to [the Company’s] relationships with multiple of those holders of [its] preferred stock,” including the circumstances under which the holders invested in the Company, the manner in which the holders may have sought control of the Company, and the Company’s prior disclosures regarding the control of the Company and beneficial ownership of its common and preferred stock included in its registration statements filed in 2017 and 2018.  On this news, the price of MabVax shares fell another $0.41 per share, or over 23%, to close at $1.36 per share on May 21, 2018.

Class Period: March 14, 2016 - May 18, 2018
Main Menu