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HGEN.US

Humanigen (HGEN) FDA Rejection for COVID-19 Treatment Settlement

D. New Jersey
Court
2:22-cv-05258
Case number
16 May 2020
Class period Start
12 Jul 2022
Class period End
07 Mar 2024
Claim deadline
  • Humanigen (HGEN) has agreed to settle $3M with shareholders to resolve claims related to misrepresenting the prospects and effectiveness of their drug for COVID-19 treatment.
On September 9, 2021, Humanigen announced that the FDA rejected lenzilumab for COVID-19 use due to concerns about its benefits and risks.

This news caused $HGEN to drop by 47% on the same day.

Then, despite optimistic statements about lenzilumab's effectiveness for COVID, Humanigen revealed that the treatment didn't perform as expected in the ACTIV-5/BET- B study.

Because of this, $HGEN fell by 79% on July 13, 2022.

Based on these events, Humanigen was accused of neglecting to reveal the following details:
  • Humangen misled about how well lenzilumab worked for hospitalized COVID-19 patients.
  • The FDA approval for lenzilumab and the success of the ACTIV-5/BET-B study were not as likely as they stated.
Humanigen has now decided to end these allegations and pay a $3M settlement to the investors.
Alleged Offence
Mismanagement
Misleading Statements
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.047
Filing date
27 March 2023
Plaintiffs
Dr. Scott Greenbaum, Joshua Mailey, Alejandro Pieroni
Attorneys
Bronstein, Gewirtz & Grossman, LLC
Defendants
Cameron Durrant, Dale Chappell
Judge
Hon. William J. Martini
Administrator
A.B. Data Ltd
Court hearing date
07 March 2024
Exclusion deadline
08 February 2024
Objection deadline
08 February 2024
Trades matching type
FIFO
+$3,000,000
Total Settlement Amount
Created by Polina Foster, Scout

Humanigen Inc

Humanigen, Inc., a clinical-stage biopharmaceutical company, focuses on preventing and treating an immune hyper-response. The company is developing lenzilumab, an antibody that binds to and neutral...

    Ticker
    HGEN.US
    ISIN
    US4448632038
    CIK
    1293310
    Sector
    Healthcare
    Industry
    Biotechnology
    Country
    USA
    Address
    830 Morris Turnpike, Short Hills, NJ, United States, 07078-2625