HGEN.US
id: 1079
Humanigen (HGEN) Settlement Over FDA Rejection for COVID-19 Treatment
The process of distributing settlement funds to claimants has started.
$3,000,000
Cash SettlementD. New Jersey
Court2:22-cv-05258
Case number05/16/2020
Class period Start07/12/2022
Class period End03/07/2024
Claim deadline- Humanigen (HGEN) has agreed to settle $3M with shareholders to resolve claims related to misrepresenting the prospects and effectiveness of their drug for COVID-19 treatment.
On September 9, 2021, Humanigen announced that the FDA rejected lenzilumab for COVID-19 use due to concerns about its benefits and risks.
This news caused $HGEN to drop by 47% on the same day.
Then, despite optimistic statements about lenzilumab's effectiveness for COVID, Humanigen revealed that the treatment didn't perform as expected in the ACTIV-5/BET- B study.
Because of this, $HGEN fell by 79% on July 13, 2022.
Based on these events, Humanigen was accused of neglecting to reveal the following details:
- Humangen misled about how well lenzilumab worked for hospitalized COVID-19 patients.
- The FDA approval for lenzilumab and the success of the ACTIV-5/BET-B study were not as likely as they stated.
Humanigen has now decided to end these allegations and pay a $3M settlement to the investors.
Case Status
Disbursement
Alleged Offence
Mismanagement,
Misleading Statements,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.047
Filing date
03/27/2023
Plaintiffs
Dr. Scott Greenbaum, Joshua Mailey, Alejandro Pieroni
Attorneys
Bronstein, Gewirtz & Grossman, LLC
Defendants
Cameron Durrant, Dale Chappell
Judge
Hon. William J. Martini
Administrator
A.B. Data Ltd
Court hearing date
03/07/2024
Exclusion deadline
02/08/2024
Objection deadline
02/08/2024
Trades matching type
FIFO
Disbursement date
04/23/2025