NEW YORK, Oct. 21, 2022 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of Humanigen, Inc. (NASDAQ: HGEN), Latch, Inc. (NASDAQ: LTCH), Azure Power Global Limited (NYSE: AZRE), and Abbott Laboratories (NYSE: ABT). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
Humanigen, Inc. (NASDAQ: HGEN)
Class Period: May 28, 2021 – July 12, 2022
Lead Plaintiff Deadline: October 25, 2022
Humanigen is a clinical-stage biopharmaceutical company that focuses on preventing and treating an immune hyper-response called “cytokine storm”, a physiological reaction in which the immune system causes an uncontrolled and excessive release of pro-inflammatory signaling molecules called cytokines, the sudden release of which in large quantities can cause multisystem organ failure and death. The Company’s lead product candidate is its proprietary antibody lenzilumab, which is under development as a treatment for, among other things, cytokine storm associated with COVID-19.
Among other trials, Humanigen is investigating lenzilumab for the treatment of hospitalized COVID-19 patients in the ACTIV-5/BET-B study, which is part of a directed public-private partnership with the National Institutes of Health.
In May 2021, Humanigen submitted an application to the U.S. Food and Drug Administration (“FDA”) requesting Emergency Use Authorization (“EUA”) for lenzilumab for the treatment of patients hospitalized with COVID-19 (the “lenzilumab EUA”).
On September 9, 2021, Humanigen issued a press release announcing that the FDA had rejected the lenzilumab EUA, advising investors 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 47.25%, 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 price fell $2.38 per share, or 79.6%, to close at $0.61 per share on July 13, 2022.
The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) lenzilumab was less effective in treating hospitalized COVID-19 patients than Defendants had represented; (ii) 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; (iii) accordingly, lenzilumab’s clinical and commercial prospects were overstated; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.
For more information on the Humanigen class action go to: https://bespc.com/cases/HGEN
Latch, Inc. (NASDAQ: LTCH)
Class Period: May 31, 2021 – August 25, 2022
Lead Plaintiff Deadline: October 31, 2022
On August 25, 2022, after the market closed, Latch revealed that it would restate financial statements for 2021 and the first quarter of 2022 due to revenue recognition errors related to the sale of hardware devices. Specifically, the Company stated that “certain revenue recognition errors occurred as a result of unreported sales arrangements due to sales activity that was inconsistent with the Company’s internal controls and procedures.”
On this news, Latch’s stock fell $0.13, or 12.2%, to close at $0.95 per share on August 26, 2022, on unusually heavy trading volume.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that there were unreported sales arrangements related to hardware devices; (2) that, as a result, the Company had improperly recognized revenue throughout fiscal 2021 and first quarter 2022; (3) that there were material weaknesses in Latch’s internal control over financial reporting related to revenue recognition; (4) that, as a result of the foregoing, Latch would restate financial statements for fiscal 2021 and first quarter 2022; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
For more information on the Latch class action go to: https://bespc.com/cases/LTCH
Azure Power Global Limited (NYSE: AZRE)
Class Period: June 15, 2021 – August 26, 2022
Lead Plaintiff Deadline: October 31, 2022
On August 29, 2022, Azure announced the resignation of its CEO, less than two months after his appointment. The Company also disclosed that it had “received a whistleblower complaint in May 2022 alleging potential procedural irregularities and misconduct by certain employees at a plant belonging to one of its subsidiaries.” During the Company’s review of these allegations, Azure “discovered deviations from safety and quality norms” and “also identified evidence of manipulation of project data and information by certain employees.”
On this news, the Company’s stock fell $4.61, or 44%, to close at $5.85 per share on August 29, 2022, on unusually heavy trading volume.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that there were procedural irregularities, including deviations from safety and quality standards, at one of Azure’s plants; (2) that certain project data was manipulated; (3) that, as a result of the foregoing, the Company’s internal controls and procedures were not effective; (4) that Azure had received a credible whistleblower report alleging such misconduct; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
For more information on the Azure class action go to: https://bespc.com/cases/AZRE
Abbott Laboratories (NYSE: ABT)
Class Period: February 19, 2021 – June 8, 2022
Lead Plaintiff Deadline: October 31, 2022
Abbott manufactures various forms of infant formula including formula sold under the brand names Similac, Alimentum, and EleCare. Prior to February 2022, Abbott had produced 40% of the United States’ infant formula. Of that amount, nearly half was produced in its manufacturing facility in Sturgis, MI.
On February 17, 2022, the US Food and Drug Administration (“FDA”) announced it was investigating four consumer complaints of infant illness related to powdered infant formula produced by Abbott in Sturgis. The FDA stated that it had initiated an onsite inspection at the facility and to date had found several positive contamination results from environmental samples for a bacteria, Cronbacter sakazakii (“Cronbacter”), linked to infant illnesses and death. On the same day, Abbott issued a recall of certain infant formula products including the popular brands Similac, Alimentum, and EleCare, all manufactured in Sturgis.
On this news, the price of Abbott common stock declined by more than 3%.
Then, on March 22, 2022, the FDA release reports from its three inspections of the Sturgis facility conducted in September 2019, September 2021, and most recently between January 31, 2022 and March 18, 2022. The FDA stated that these reports “do not constitute final FDA determinations” of specific violations, but highlighted that during its most recent inspection that (a) Abbott failed to establish process controls “designed to ensure that infant formula does not become adulterated due to the presence of microorganisms in the formula or in the processing environment” and (b) Abbott failed to “ensure that all surfaces that contacted infant formula were maintained to product infant formula from being contaminated by any source.”
On this news, Abbott’s stock price fell by an additional 4%.
On April 28, 2022, the FDA released a redacted copy of a whistleblower complaint sent to the FDA in October 2021, revealing that the issues disclosed in February and March 2022 were actually known to Abbott management far earlier. The whistleblower complaint identified numerous serious examples of misconduct by Abbott management at Sturgis including the falsification of testing records, the release of untested infant formula to the market, efforts to mislead the FDA during its 2019 inspection audit, the continuation of known deficient testing procedures, and an inability to trace products to properly implement recalls of affected pallets of formula.
On this news, Abbott’s stock price fell nearly 4%.
Finally, on June 8, 2022, investors learned that Abbott was aware of the whistleblower’s formal allegations in early 2021, when it was reported that the FDA whistleblower had filed a complaint in February 2021 with the US Labor Department’s Occupational Safety & Health Administration (“OSHA”) and that OSHA delivered that complaint to Abbott and the FDA during the same month.
On this news, Abbott’s stock price fell by an additional 3.5%, further damaging investors.
The Abbot class action lawsuit alleges that defendants put profitability ahead of children’s safety. During the Class Period, Abbott engaged in a scheme to maximize revenues and inflate its stock price while disregarding and then concealing lapses in safety protocols that were ultimately linked to serious infant illnesses and even deaths.
For more information on the Abbott class action go to: https://bespc.com/cases/ABT
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
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Brandon Walker, Esq.
Melissa Fortunato, Esq.