Immunomedics, Inc (NASDAQ:IMMU) has a number of legal investigations initiated against it, by several law firms, on the charges of violation of the Securities Exchange Act of 1934. Shareholders who had purchased their shares of the company, between April 20 and June 2, 2016, are being asked to come forward and claim their rights. However, the law firms are clearly indicating that the investors should still possess the shares bought during this period.
As per the details of these filings, the law firms are claiming that the company and its board made misleading and materially false statements about the company’s business and operations. Moreover, the firms also claim that several adverse facts about the company had been omitted as well. The law firms are pointing towards the recent removal of the company’s presentation from the 2016 conference of the American Society of Clinical Oncology. They claim that due to the fact that ASCO removed the presentation on grounds that the filed data is redundant, the stock had actually been trading at inflated prices for the period between April 20 and June 2, 2016.
IMMU had filed an abstract for IMMU-132, claiming that the results had previously been undisclosed and the findings are new. However, upon investigation ASCO found that the results were actually from a previously disclosed mid-stage study of the drug. As such, the presentation and filing were in violation of ASCO policies and were immediately removed from the meeting. The law firms claim that the false news, from Immunomedics, had potentially made the stock trade at an inflated price, of which 15% was immediately lost during the day of ASCO’s announcement. However, a lead plaintiff is yet to be appointed and the law firms have asked the shareholders to come forward, prior to August 8, 2016.
Immunomedics, Inc (NASDAQ:IMMU) had a trade volume of 2.04 million and lost 5.39% of its share value, during the June 16 trading session, to close at a share price of $2.81.