NEW YORK, Aug. 05, 2022 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that it has filed a class action lawsuit against Kiromic BioPharma, Inc. (“Kiromic” or the “Company”) (NASDAQ: KRBP) and against certain officers and directors of the Company. The class action was filed in the United States District Court for the Southern District of New York on behalf of a class consisting of all persons and entities that purchased or otherwise acquired: (1) Kiromic common stock pursuant and/or traceable to the Offering Documents (defined below) and/or (2) Kiromic securities between June 25, 2021 and August 13, 2021, both dates inclusive (the “Class Period”). Plaintiff pursues claims against Defendants under the Securities Act of 1933 and the Securities Exchange Act of 1934.
The Company’s public offering closed on July 2, 2021 (the “Offering”) and was conducted pursuant to a registration statement filed with the SEC on June 25, 2021 (“Registration Statement”) and a final prospectus dated June 29, 2021 (the “Prospectus,” with the Registration Statement, the “Offering Documents”).
The Complaint alleges that the Offering Documents failed to disclose that the FDA had, prior to the filing of the Registration Statement and Prospectus, imposed a clinical hold, and in fact, contained statements indicating that it had not. Given that the Offering closed on July 2, 2021, more than thirty (30) days after the Company submitted the IND applications for its two immunotherapy product candidates, investors were assured that no clinical hold had been issued and clinical trials would commence.
The Company, however, had received communications from the FDA on June 16 and 17, 2021, informing it that the FDA was placing the IND applications for its two candidate products on clinical hold. The Offering Documents failed to disclose this information, instead representing that clinical testing was expected to proceed in the third quarter of 2021. Clinical testing did not proceed in the third quarter of 2021, nor was it likely given the FDA’s imposition of a clinical hold.
Investors who purchased or otherwise acquired shares of Kiromic should contact the Firm prior to the October 4, 2022 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].
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