Gibbs Law Group Investigates Potential Securities Law Violations
Y-mAbs Therapeutics, Inc. shares plummeted over 59% on October 31, 2022, after an FDA advisory committee voted against approving the company’s neuroblastoma drug omburtamab on October 28, 2022, according to Marketwatch. Shares of Y-mAbs previously dropped 27% on October 26, 2022, after the FDA posted briefing documents in advance of the vote outlining “significant questions" as to the adequacy and control of the study Y-mAbs submitted regarding omburtamab. Gibbs Law Group is looking into a potential Y-mAbs Therapeutics (YMAB) Securities Class Action Lawsuit on behalf of shareholders who lost money in Y-mAbs Therapeutics, Inc. (NASDAQ:YMAB).
To speak with an attorney regarding this class action lawsuit investigation, click here or call (888) 410-2925.
On Monday, October 31, 2022, shares of Y-mAbs Therapeutics, Inc. plunged more than 59% after Marketwatch reported that an FDA committee voted 16-0 on Friday, October 28th, “that there wasn't enough evidence to say that [Y-mAbs’s experimental neuroblastoma drug] omburtamab improves overall survival.” J.P. Morgan also downgraded Y-mAbs stock from “neutral” to “underweight,” with analysts explaining: “[W]e do not think recent newsflow bodes well for investor confidence or for ascribing further pipeline value to follow-on indications which are mostly in their early innings of development."
The FDA’s rejection of omburtamab follows briefing documents submitted by the FDA on October 26, 2022 that posed “significant questions as to whether the submitted study can be considered an adequate and well-controlled trial necessary to establish effectiveness.”
Previously, in y-mAbs’s earnings call for Q2 of 2022 on August 9, 2022, the company assured investors it had been involved in a number of “ongoing” discussions with the FDA regarding omburtamab and the team was “confident” they would be able to address any issues raised. The company further expressed, “given the fact that [neuroblastoma] is a rare disease, in an area of unmet medical need with very poor prognosis, we also believe the FDA…will look at this as an area where flexibility needs to be applied in making any judgments around risk benefit assessments.”
This is not the first set-back Y-mAbs has received for its drug omburtamab. In October of 2020, the FDA had issued a Refusal to File letter, leading Y-mAbs to resubmit its application for the drug on April 1, 2022.
Following this news of the FDA’s vote, y-mAbs’s stock price closed at 59% on October 31, 2022, causing significant harm to investors.
What Should Y-mAbs Investors Do?
If you invested in Y-mAbs, visit our website or contact our securities team directly at (888) 410-2925 to discuss how you may be able to recover your losses. Our investigation concerns whether y-mAbs Therapeutics, Inc. has violated federal securities laws by providing false or misleading statements to investors.
About Gibbs Law Group
Gibbs Law Group represents investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Class Action Practice Group of the Year,” “Consumer Protection MVP,” and “Top Women Lawyers in California.”
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