NEWTOWN, Pa., Sept. 23, 2024 (GLOBE NEWSWIRE) — Edelson Lechtzin LLP, a leading class action law firm, announces the recent filing of a securities fraud class action on behalf of purchasers of Allarity Therapeutics, Inc. (NASDAQ: ALLR) common stock between May 17, 2022, and July 19, 2024, inclusive (the “Class Period”). A copy of the Complaint can be found HERE.
Investors who purchased Allarity stock may move the U.S. District Court for the Southern District of New York to appoint them as lead plaintiff, no later than November 12, 2024. Please contact Edelson Lechtzin LLP to discuss your investment losses at 844-696-7492 or by e-mail at elechtzin@edelson-law.com.
Background on Allarity Therapeutics, Inc.
Allarity Therapeutics, based in Boston, Massachusetts, is a biopharmaceutical company focused on oncology therapeutics. Its drug candidates include Dovitinib, a pan-tyrosine kinase inhibitor for treating renal cell carcinoma, accompanied by a companion diagnostic technology called “DRP®-Dovitinib” or “Dovitinib-DRP.”
The Securities Fraud Claims
Throughout the Class Period, the complaint alleges that Defendants made materially false and/or misleading statements regarding the Company’s business, operations, and prospects, including that: (i) Defendants had overstated the Dovitinib NDA’s continued regulatory prospects; (ii) Allarity and three of its former officers had engaged in illegal, illicit, and/or otherwise improper conduct in connection with the Dovitinib NDA and/or the Dovitinib-DRP PMA; (iii) the alleged misconduct subjected the Company to an increased risk of regulatory scrutiny and significant legal, monetary, and reputational harm; (iv) following Allarity’s announcement that it was being investigated for wrongdoing in connection with the Dovitinib NDA and Dovitinib-DRP PMA, the Company downplayed the likelihood that an enforcement action would result from such investigation.
On June 29, 2022, Allarity announced the appointment of James G. Cullem as interim CEO and Joan Y. Brown as interim CFO, with the former CEO and CFO stepping down to pursue other opportunities. The next day, Allarity disclosed in an SEC filing that Defendants Carchedi and Knudsen had either resigned or been terminated from all positions with the company and its subsidiaries without clarifying the reason. On this news, the price of Allarity’s stock fell $0.31 per share, or 19.02%, to close at $1.32 per share on June 30, 2022.
On August 2, 2022, Allarity announced a change in its oncology pipeline strategy. The Company will no longer focus on developing monotherapies and will not pursue approval of Dovitinib as a monotherapy. This decision is based on feedback from the FDA and the commercial viability of shareholders. On this news, Allarity’s stock fell $0.045 per share, or 3.68%, to close at $1.175 per share on August 2, 2022.
On February 6, 2023, Allarity disclosed in an SEC filing that it is under investigation by the SEC regarding its disclosures about communications with the FDA regarding its NDA for Dovitinib or Dovitinib-DRP. On this news, Allarity’s stock price fell $0.009 per share, or 3.8%, to close at $0.228 per share on February 6, 2023.
On December 11, 2023, Allarity disclosed in an SEC filing that Cullem was terminated as CEO, and Thomas Jensen was appointed as the new CEO on December 8, 2023. On this news, Allarity’s stock fell $0.075 per share, or 13.37%, to close at $0.486 per share on December 11, 2023.
On July 22, 2024, Allarity disclosed receiving a Wells Notice from the SEC related to the company’s disclosures about meetings with the FDA regarding the NDA for Dovitinib or Dovitinib-DRP. Three former officers received Wells Notices from the SEC related to the same conduct. On this news, Allarity’s stock price fell $0.004 per share, or 2.38%, to close at $0.164 per share on July 22, 2024.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492 or 215-867-2399 ext. 1
Email: medelson@edelson-law.com
Email: elechtzin@edelson-law.com
Web: www.edelson-law.com
Edelson Lechtzin LLP is a leading class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.
This press release may be considered Attorney Advertising in some jurisdictions. No class has been certified in this case, so you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. Your ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
