Girard Gibbs LLP announces that a class action lawsuit has been filed on behalf of purchasers of Immunomedics, Inc. (NASDAQ: IMMU) common stock between May 9, 2013 and October 9, 2013, inclusive, who are seeking to recover damages for alleged violations of the Securities Exchange Act of 1934.
Immunomedics is a biopharmaceutical company primarily focused on the development of monoclonal antibody-based products for the targeted treatment of cancer, autoimmune, and other serious diseases. The Company has built a pipeline of therapeutic product candidates that are in clinical development.
In 2008, Immunomedics entered into a License and Collaboration Agreement with Nycomed GmbH, wherein Immunomedics issued Nycomed a worldwide license to develop, manufacture, and commercialize Veltuzumab, a humanized monoclonal antibody used for the treatment of all non-cancer indications. Immunomedics retained the rights to develop, manufacture, and commercialize Veltuzumab in the field of oncology. In September 2011, Takeda Pharmaceutical Company acquired Nycomed to form Takeda-Nycomed. As a result of the Agreement, Takeda-Nycomed was responsible for completing the clinical development and obtainment of all necessary regulatory approvals for Veltuzumab, as well as commercializing and manufacturing Veltuzumab for sale in non-cancer indications. During this time, however, Takeda-Nycomed and the Immunomedics were engaged in a dispute regarding a delay in the therapeutic compound’s development.
On October 9, 2013, Immunomedics issued a press release announcing that the Agreement with Takeda-Nycomed had been terminated. On this news, Immunomedics common stock dropped 5.9% on heavy trading volume. Moreover, on the previous day, October 8, 2013, Immunomedics common stock dropped nearly 12%, on very heavy trading volume, as news about the termination of the Agreement leaked into the market.If you are a member of the Class described above and you meet certain legal requirements, you may file a motion with the Court to serve as lead plaintiff, no later than April 28, 2014. No action is required to remain a member of the Class. You may retain counsel of your choice or take no action and remain an absent member of the Class.