Company: Immunomedics, Inc.
A shareholder class action lawsuit has been filed against Immunomedics, Inc. (“Immunomedics” or the “Company”) (NASDAQ: IMMU) on behalf of investors who purchased the Company’s common stock between August 23, 2018 and December 20, 2018, inclusive (the “Class Period”).
On December 17, 2018, FDAnews.com published an article entitled “FDA Hits Immunomedics for Data Integrity Breach.” According to the article, “[t]he FDA cited Immunomedics for a host of violations – including its handling of a data integrity breach – observed at its Morris Plains, New Jersey, drug substance manufacturing facility between August 6 and 14.” The article reported that the breach included “manipulated bioburden samples, misrepresentation of an integrity test procedure in the batch record, and backdating of batch records, such as dates of analytical results.” Following this report, shares of Immunomedics’ stock declined to $17.86 per share.
Subsequently, on December 20, 2018, Favus Institutional Research issued a Report (the “Favus Report”) further detailing the data integrity breach. Following the Favus Report, shares of the Company’s stock declined $3.47 per share, or nearly 20% in value, to close on December 20, 2018 at $14.17 per share, on heavy trading volume.
The class action complaint alleges that Immunomedics misled investors during the Class Period by stating in its SEC filings that “the FDA generally will issue a notice on Form 483 if it finds issues with respect to its inspections” without disclosing to investors the fact that, between August 6, 2018, and August 14, 2018, the FDA cited Immunomedics for a host of violations observed at its Morris Plains, New Jersey, drug substance manufacturing facility. These violations included manipulated bioburden samples, misrepresentation of an integrity test procedure in the batch record, and backdating of batch records, such as dates of analytical results.
Immunomedics stockholders who purchased shares of the Company’s stock prior to December 20, 2018 are encouraged to contact the firm to discuss their legal rights and potential recovery options.