SAN DIEGO & NEW YORK–(BUSINESS WIRE)–Shareholder rights law firm Robbins LLP announces that a purchaser of Immunovant, Inc. (NASDAQ: IMVT) filed a class action complaint against the Company and its officers and directors for alleged violations of the Securities Exchange Act of 1934 between October 2, 2019 and February 1, 2021. Immunovant is a clinical-stage biopharmaceutical company. The Company is developing IMVT-1401, which is in Phase IIa clinical trials for the treatment of Graves’ ophthalmopathy. The Company has also completed initiation of Phase II clinical trials of IMVT-1401 for the treatment of warm autoimmune hemolytic anemia.
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Immunovant, Inc. (IMVT) Misled Shareholders About the Viability of its Drug Candidate IMVT-1401
According to the complaint, on September 29, 2019, Health Sciences Acquisitions Corporation (HSAC), then a special purpose acquisition company, entered into an agreement with Immunovant Sciences Ltd., a private biopharmaceutical company, to effect a merger between the two entities. As a result of the merger, HSAC acquired all shares of Immunovant Sciences and Immunovant Sciences became a wholly owned subsidiary of HSAC. HSAC then changed its name to Immunovant, Inc.
During the relevant period, defendants made false and/or misleading statements and/or failed to disclose that: (i) HSAC had performed inadequate due diligence into Immunovant Sciences prior to the merger; (ii) HSAC ignored safety issues associated with Immunovant Science’s drug candidate IMVT-1401; and (iii) IMVT-1401 was less safe than the Company had led investors to believe, which foreseeably diminished its prospects for regulatory approval, commercial viability and profitability.
On February 2, 2021, Immunovant issued a press release announcing “a voluntary pause of dosing in its original clinical trials for IMVT-1401,” and disclosed that it “has become aware of a physiological signal consisting of elevated total cholesterol and LDL [low density lipoproteins] levels in IMVT-1401-treated patients.” On this news, Immunovant’s stock price fell $18.22 per share, or 42.08%, to close at $25.08 per share on February 2, 2021.
If you purchased shares of Immunovant, Inc. (IMVT) between October 2, 2019 and February 1, 2021, you have until April 20, 2021, to ask the court to appoint you lead plaintiff for the class.
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