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Pomerantz LLP

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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

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