Bronstein, Gewirtz & Grossman, LLC has announced a securities class action against Keryx Biopharmaceuticals (NASDAQ:KERX) and the notice seeks to remind investors.
The class action was announced on behalf of investors that purchased the shares from the pharmaceutical company between February 25 and July 29 this year. The aim of the class action is to seek damages and justice for the company’s alleged violation of the Federal Securities Law as indicated in the Securities Exchange Act of 1933.
The class action claims that Keryx made misleading and materially false statements throughout the class period. It also claims that the defendant failed to reveal material adverse facts about its business prospects and operations. The company was also accused of failing to disclose that it gave misleading statements. Keryx was facing difficulty in converting its API into a finished product.
Keryx markets treatments for patients suffering from renal disease. One of its popular products is a drug known as Auryxia (ferric citrate), an iron-based compound that was approved by the FDA September 2014. The drug is known as Fexeric in Europe and Riona in Japan. It is used to manage the level of serum phosphorus in people suffering from chronic kidney disease.
The pharmaceutical company also came clean on august 1 revealing that it experienced a production-related problem that will disrupt the supply of Auryxia tablets. Keryx also stated that its current stock of the drug is not sufficient to warrant uninterrupted access to patients thus suggesting that there might be a shortage. The company has however announced that it expects to fix the problem and restore adequate stock within the fourth quarter.
The announced class action is yet to be certified and proceedings will be announced soon.The news sis however expected to negatively affect the company’s stock. Bronstein, Gewirtz & Grossman, LLC which is a corporate and it is expected to keep on pursuing the Keryx class action on behalf of the investors.