XCUR.US
id: 1306
Exicure (XCUR) $5,6M Investor Settlement Over Misleading Clinical Data
N.D. Illinois
Court1:21-cv-06637
Case number07 Jan 2021
Class period Start10 Dec 2021
Class period EndExicure has agreed to a $5,6 million settlement with investors. Investors claim the company misled them by overstating the progress of its preclinical research for Friedreich’s ataxia treatment and concealing significant data issues.
Outline
Exicure allegedly misled investors by hiding critical problems in its preclinical research for Friedreich’s ataxia treatment, resulting in a share price drop of about 33.9% and significant financial losses.
Timeline
- January - December 2021: Exicure reported strong progress on Friedreich’s ataxia treatment, boosting investor confidence with presentations and data that were later proven to be fabricated.
- November 2021: Exicure hinted at issues, announcing an investigation into potential misconduct, causing a drop in stock prices.
- December 2021: Exicure admitted to data fabrication, leading to further stock declines and investor losses.
Background
Throughout 2021, Exicure consistently provided upbeat updates on its research into Friedreich’s ataxia, a genetic disorder affecting the nervous system. The company highlighted promising preclinical data during events like R&D Day, suggesting that the treatment was on the verge of entering clinical trials. These claims, which were shared widely with investors, painted an optimistic picture of the project’s future.
However, it was later uncovered that much of this data had been fabricated by Dr. Grant Corbett, the Group Head of Neuroscience at Exicure. Despite being aware of these fabrications, the company continued to issue positive statements, misleading investors about the true state of the research.
The truth was finally revealed in December 2021, when Exicure disclosed through an SEC filing and internal investigation that the data was falsified. This disclosure led to a sharp decline in the company's stock price, resulting in significant financial losses for its investors.
What can investors expect now?
Exicure recently decided to resolve the suit and settle $5,6M with investors to end all allegations related to the concealing of critical research issues.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Case Status
Stipulative Settlement
Alleged Offence
Mismanagement,
Misleading Statements,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.14
Filing date
13 December 2021
Plaintiffs
Mark Colwell
Attorneys
Bleichmar Fonti & Auld LLP (New York, NY), Fegan Scott LLC (Chicago, IL), The Schall Law Firm (Los Angeles, CA)
Defendants
David A. Giljohann, Brian C. Bock, Grant Corbett
Judge
Hon. John F. Kness
Administrator
EPIQ
Settlement agreement date
2024-09-06
Attorney fee
$3,325,000
Trades matching type
FIFO
+$5,625,000
Cash Settlement Amount