Shareholder rights law firm Robbins LLP is investigating Humanigen, Inc. (NASDAQ: HGEN) and its officers and directors to determine whether they breached fiduciary duties and violated securities laws in overstating the clinical and commercial prospects of treatment for its lead drug candidate. Humanigen is a clinical-stage biopharmaceutical company that focuses on preventing and treating an immune hyper-response called "cytokine storm," which can result in organ failure and death. The Company’s lead product candidate is proprietary antibody lenzilumab, which is under development as a treatment for, among other things, cytokine storm associated with COVID-19.
If you would like more information about our investigation into Humanigen, Inc.'s misconduct, click here.
What is this Case About: According to a class action complaint filed against Humanigen, in May 2021, Humanigen submitted an application to the U.S. Food and Drug Administration requesting Emergency Use Authorization ("EUA") for lenzilumab for the treatment of patients hospitalized with COVID-19.
On September 9, 2021, Humanigen announced that the FDA had rejected the lenzilumab EUA, advising that "[i]n its letter, [the] FDA stated that it was unable to conclude that the known and potential benefits of lenzilumab outweigh the known and potential risks of its use as a treatment for COVID-19." On this news, Humanigen's stock price fell $7.14 per share, or over 47%, to close at $7.97 per share on September 9, 2021.
Then, on July 13, 2022, Humanigen disclosed that lenzilumab had failed to show statistical significance on the primary endpoint of the ACTIV-5/BET-B study. On this news, Humanigen's stock fell almost 80%, to close at $0.61 per share on July 13, 2022.
During the class period, defendants failed to disclose that lenzilumab was less effective in treating hospitalized COVID-19 patients than defendants had represented. As a result, the FDA was unlikely to approve the lenzilumab EUA and the ACTIV-5/BET-B study was unlikely to meet its primary endpoint.
Next Steps: If you acquired shares of Humanigen, Inc. (HGEN) between May 28, 2021 and July 12, 2022, you have legal options. Contact Robbins LLP for more information about your rights.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
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About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Humanigen, Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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