Pomerantz LLP

Humanigen, Inc. is a biopharmaceutical company focused on preventing and treating certain inflammatory and oncological conditions. Humanigen, f/k/a KaloBios Pharmaceuticals and once led by the convicted Martin Shkreli, faced bankruptcy and reorganization after his arrest. By late 2019, it was struggling financially. However, when the COVID-19 pandemic emerged, Humanigen pivoted to explore its main drug, lenzilumab, originally developed for cancer, as a potential COVID-19 treatment. Pomerantz brought a securities class action against Humanigen for allegedly misrepresenting the effectiveness of lenzilumab for treating COVID-19 while failing to disclose important risks associated with the drug for patients with lung issues. The defendants did not inform investors that GM-CSF, which lenzilumab blocks, is crucial for lung health. After the FDA rejected lenzilumab’s Emergency Use Application on September 9, 2021, citing that the risks outweighed the benefits, executives continued to promote the drug’s prospects. The complaint further alleged that the news of the FDA rejection caused the stock price to plummet nearly 50%. After the results of a clinical trial were published, which failed to prove that lenzilumab was effective against COVID-19, the stock price dropped again, this time nearly 80%. Led by attorney Brenda Szydlo, Pomerantz recently secured a $3 million settlement for defrauded Humanigen investors. The firm is proud of this achievement; there is a need for transparency and corporate accountability in the biopharmaceutical industry, where public health and investor trust are on the line. #Biopharma #InvestorProtection #CorporateAccountability #TransparencyMatters #SecuritiesLitigation #ClassAction

In the latest issue of the Pomerantz Monitor, Michael Grunfeld discusses the Supreme Court’s June 2024 decision in Loper Bright Enterprises v. Raimondo, which overturns the 40-year precedent set by Chevron v. Natural Resources Defense Council. This ruling requires courts to use their independent judgment regarding agency interpretations of federal law, reducing the authority of agencies like the SEC and EPA. Justice Elena Kagan's dissent highlights concerns about the balance of regulatory power shifting too heavily to the judiciary.   Read more: https://lnkd.in/d-56d7bQ

We are proud to announce that Pomerantz Managing Partner Jeremy Lieberman has been named among the Top 100 Attorneys in the NY Metro Area by Super Lawyers for the fourth year in a row. Jeremy's litigation skills, thought leadership and contributions to the field of securities litigation continue to impress colleagues, adversaries, and the courts. #SuperLawyers #LegalExcellence #SecuritiesLitigation 

In June 2024, Pomerantz hosted its Corporate Governance Roundtable outside the U.S. for the first time, drawing over 100 institutional investors and governance professionals to London for a day of engaging discussion and insight. What began a decade ago as a small gathering of institutional investors has now grown into the firm’s flagship event. This year’s conference covered topics such as AI, greenwashing, and securities litigation, and included a keynote speech by former British Prime Minister Sir Tony Blair. Pomerantz Partner and Head of Client Services Jennifer Pafiti played a key role in organizing the event. #CorporateGovernance #Roundtable #InstitutionalInvestors #SecuritiesLitigation 

British American Tobacco (BAT), one of the largest players in the tobacco market worldwide, claims to have a powerful stake in both the traditional cigarette sector and the emerging alternative nicotine space. Known for brands like Lucky Strike and Dunhill, BAT faces growing scrutiny over health risks and the challenges tied to its core business, operations, and future prospects.   In February 2023, BAT projected a positive outlook but downplayed struggles with its premium cigarette brands, which are losing market share to cheaper alternatives. While the company reported steady sales, it allegedly masked deeper issues affecting the value of these premium brands, claiming certain products were performing "well" without addressing the long-term decline in cigarette demand.   The truth emerged in December 2023 when BAT announced a staggering £25 billion ($31.5 billion) loss on its cigarette brands due to economic challenges and a shift toward smokeless products. According to a report from the Wall Street Journal (WSJ), this loss is one of the largest write-offs in the industry, largely attributed to smokers opting for cheaper options and illegal disposable vapes. Additionally, a Reuters report indicated that BAT recognizes its U.S. tobacco brands may not hold much value in the future, highlighting the need to focus more on alternatives like vapes. On this news, BAT’s stock price plummeted by 8.88% (or $2.68 per share), leading to significant losses for investors and raising concerns about the company's financial stability. Pomerantz was appointed lead counsel in an investor suit against BAT, alleging that the company materially understated the risks to its premium American cigarette brands, rendering its statements about its business, operations, and prospects materially false and misleading.   #TobaccoIndustry #HealthRisks #CorporateAccountability #SecuritiesLitigation #ClassAction

In the Spring 2024 issue of The Business Lawyer, Senior Counsel Marc Gross challenges views expressed by Columbia Law Professors Merritt Fox and Joshua Mitts in their Winter 2022-2023 article, “Event-Driven Suits and the Rethinking of Securities Litigation.” In an interview with the Pomerantz Monitor, Marc discussed how courts often overlook the role of corporate reputation when evaluating the effects of misleading statements on stock prices. He highlights how this gap in perspective can influence damages assessments in securities fraud class actions, making his perspective a must-read for those interested in the evolving landscape of securities litigation. Read More: https://lnkd.in/eZV3xKea #LegalInsight #InvestorProtection #CorporateReputation #SecuritiesLitigation #ClassAction

Delve into the European Pensions Spring 2024 edition to learn how securities litigation offers shareholders a powerful tool to hold companies accountable for deceptive practices and improve corporate governance. The article, "Expanding the Toolbox: Securities Litigation as a Mode of Corporate Engagement," by Pomerantz Partner and Head of Client Services Jennifer Pafiti and Pomerantz's Director of ESG and UK Client Services, Dr. Daniel Summerfield, explores how litigation is being increasingly used in the U.S., Europe, and the U.K. to address ESG concerns, enhance transparency, and protect investments. Read more: https://lnkd.in/eQgmizWZ #SecuritiesLitigation #CorporateGovernance #ESG #InvestorProtection #EuropeanPensions 

Altimmune, a clinical-stage biotechnology company focused on developing treatments for obesity and liver disease, claimed it had a game-changer with its GLP-1 agonist, pemvidutide, which was in the trial stage to aid weight loss and manage metabolic diseases. In November 2023, Altimmune touted promising results from its 48-week Phase 2 trial for pemvidutide, setting high expectations for the drug’s potential to compete with established treatments. However, Altimmune allegedly misrepresented pemvidutide's competitive edge over other GLP-1 agonists, misleading investors about the drug’s commercial potential and the likelihood of securing strategic partnerships. In February 2024, a report by Kerrisdale Capital criticized pemvidutide’s competitiveness and efficacy, suggesting the drug was inferior to established GLP-1 treatments like Ozempic and Mounjaro, and questioned its tolerability. On this news, in February 2024, Altimmune’s stock price dropped 18.65%. In April 2024, Bloomberg reported that Guggenheim Securities downgraded Altimmune’s stock from "buy" to "neutral," citing slim chances of securing a strategic partnership for pemvidutide. On this news, Altimmune’s stock fell another 11.98%, severely damaging investors. Pomerantz was appointed Lead Counsel in an investor suit against Altimmune, alleging that the company misled investors about the potential for pemvidutide to stand out from its competitors and its prospects of finding a strategic partner to develop the treatment. #ClinicalTrials #Biotech #InvestorProtection #SecuritiesLitigation #ClassAction

In the latest issue of The Pomerantz Monitor, Genc Arifi explores how courts are interpreting Section 12 of the Securities Act in relation to blockchain technology and cryptocurrency, particularly regarding who qualifies as a "seller" in this evolving landscape. He discusses how the role of social media in promoting cryptocurrencies has challenged traditional definitions of solicitation, leading to varied court rulings on whether online promotions are considered actionable solicitations. Additionally, Genc examines the distinctions between centralized and decentralized cryptocurrency exchanges and their implications for liability under Section 12, emphasizing the need for regulatory updates to keep pace with technological advancements. Read more at: [https://lnkd.in/eZV3xKea] #Blockchain #Cryptocurrency #FinancialRegulation #EmergingTech

In September 2023, the clinical-stage biotechnology company Gritstone bio Inc. entered a contract with the Biomedical Advanced Research and Development Authority (“BARDA”) to conduct a 10,000-participant study comparing its COVID-19 vaccine with an approved counterpart. In a press release announcing this study, Gritstone supposedly touted the contract as validation of its vaccine, expecting to launch the study in early 2024. However, on February 12, 2024, Gritstone revealed a delay in the study until Fall 2024 to be able to utilize GMP-grade raw materials in the vaccine. Following this announcement, on February 29, the company issued a press release announcing an “approximately 40% reduction in its workforce,” stating that this decision stemmed from the delay of the proposed CORAL Phase 2b study, which resulted in Gritstone not receiving the external funding it had anticipated for the first quarter of 2024. On this news, Gritstone’s stock price fell by $0.78 per share, or 27.86%, to close at $2.02 per share on March 1, 2024. Pomerantz LLP was recently named Lead Counsel in an investor lawsuit against Gritstone alleging that the company made misleading statements about the study's launch, impairing its ability to secure external funding, and overstating its product development capabilities. #ImmunoOncology #PharmaceuticalIndustry #HealthcareInnovation #RegulatoryCompliance #SecuritiesLitigation #ClassAction