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HGEN.US
id: 1079

Humanigen (HGEN) Settlement Over FDA Rejection for COVID-19 Treatment

$3,000,000
Cash Settlement
D. New Jersey
Court
2:22-cv-05258
Case number
05/16/2020
Class period Start
07/12/2022
Class period End
03/07/2024
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 Type
US Securities Class Action
Case Status
Distribution Started
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
04/30/2025