MannKind Corporation (NASDAQ:MNKD) has come under scanner as Levi & Korsinsky, LLP has filed a Class Action lawsuit against the company. According to reports, all the investors and individuals having bought securities in the company from August 10, 2015 to January 5, 2016 could be affected due to the legal action.
The Class Action case has been filed in the Central District of California and the Levi & Korsinsky, LLP has invited all persons having incurred loss in the company for the above period to become a lead petitioner.
As per the complainant, the company has providing deceptive and fake information about the progress of its drug therapies to the stakeholders. MannKind did not provide any information regarding the spirometry test progress for the insulin drug Afrezza as the tests were affecting the sales of the drug. The information regarding the operations, business and future opportunities of the company were thus, all misleading and the Class Action lawsuit has been filed.
Founder Alfred E. Mann No More
Meanwhile, the 90-year-old founder of MannKind Alfred E. Mann passed away on February 25 in Las Vegas. He is among the pioneers for creation of heart pacemakers, diabetic insulin pumps, ear cochlear implants, eye retinal implants and much more. Mann had served as Chairman for the company till February 17, 2016 and then unexpectedly stepped down from the post.
MannKind stated that Mann was behind development and financing of 14 firms out of which he had acquired nine for $8 billion. The pacemaker was the main reason behind the company’s success and made it surge ahead of all competition from rival pharmaceutical firms. Mann was the man who led the pacemaker concept due to his belief and pumped in his own money in the company for its development initially.
MannKind Afrezza Drug Needs Boost
His inhaled insulin drug Afrezza got the U.S. Food and Drug Administration nod in 2014 but sales have not been able to improve and this has been a major issue plaguing MannKind. According to chief executive officer Matthew Pfeffer, the company was working very hard to keep Mann’s legacy going on in the field of medical science.