Altimmune, Inc. (NASDAQ: ALT) is facing a securities class action lawsuit filed in the United States District Court for the District of Maryland. The lawsuit alleges that Altimmune made materially false and misleading statements about its business, operations, and prospects between December 1, 2023, and April 26, 2024.
According to the complaint, Altimmune overstated the potential of its drug, pemvidutide, to outperform competing GLP-1 agonists based on efficacy and tolerability results from the MOMENTUM Trial. The lawsuit claims that the trial results were not as significant as the company led investors to believe and that Altimmune had exaggerated its chances of finding a strategic partner to develop pemvidutide. As a result, the company’s public statements were allegedly misleading.
The litigation also references a report by Kerrisdale Capital, which stated that Altimmune’s drug had little chance of competing with existing GLP-1 agonists. The report highlighted the superior weight-loss and blood-sugar control benefits of other drugs in comparison to pemvidutide, while also raising concerns about the drug’s tolerability. The Kerrisdale Report cast doubt on the prospect of prospective partners investing in Altimmune’s drug.
Following the release of the report, Altimmune’s stock price fell by 18.65% on February 13, 2024. Further negative news emerged in an article published by Bloomberg on April 29, 2024. Guggenheim Securities downgraded Altimmune’s stock to neutral and expressed skepticism about the likelihood of a partnership for pemvidutide. The article stated that the failure to secure a partner raised doubts about the drug’s future prospects, causing a 11.98% drop in the company’s stock price.
Investors who purchased Altimmune, Inc. shares during the Class Period are urged to contact the law firm Gainey McKenna & Egleston before the July 5, 2024 lead plaintiff motion deadline. A lead plaintiff will represent other class members in the ongoing litigation.
For more information about the lawsuit and how to get involved, interested parties can visit the Gainey McKenna & Egleston website at http://www.gme-law.com or contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. at (212) 983-1300 or via email at [email protected] or [email protected].
Disclaimer: This article is for informational purposes only and is not intended as legal or financial advice.
Altimmune, Inc. (NASDAQ: ALT) is currently facing a securities class action lawsuit in the United States District Court for the District of Maryland. The lawsuit alleges that Altimmune made false and misleading statements about its business, operations, and prospects between December 1, 2023, and April 26, 2024. The company is accused of overstating the potential of its drug, pemvidutide, based on efficacy and tolerability results from the MOMENTUM Trial, leading to allegedly misleading statements to investors.
One key challenge for Altimmune is the report by Kerrisdale Capital, which questioned the competitiveness of the company’s drug compared to existing GLP-1 agonists. The report raised concerns about pemvidutide’s weight-loss and blood-sugar control benefits, as well as its tolerability. This report cast doubt on the likelihood of prospective partners investing in Altimmune’s drug.
Another challenge is the downgrade of Altimmune’s stock by Guggenheim Securities, who expressed skepticism about the likelihood of a partnership for pemvidutide. The failure to secure a partner raised doubts about the drug’s future prospects and resulted in a significant drop in the company’s stock price.
In terms of market trends, the pharmaceutical industry is highly competitive and constantly evolving. Companies like Altimmune rely on partnerships to advance their drug development and gain market presence. The success of a drug often depends on its efficacy, tolerability, and ability to outperform existing treatments. Altimmune’s misrepresentations regarding pemvidutide’s potential may have undermined investor confidence and impacted the company’s market position.
Forecasting the outcome of the lawsuit is challenging since it is an ongoing legal process. Investors who purchased Altimmune shares during the Class Period are urged to contact the law firm Gainey McKenna & Egleston before the July 5, 2024 lead plaintiff motion deadline if they wish to participate in the ongoing litigation. The involvement of a lead plaintiff will represent other class members who have been affected by the alleged misleading statements made by Altimmune.
It is important to note that this response is based on the information provided in the article and does not constitute legal or financial advice. Investors or interested parties should consult with their own legal or financial professionals for personalized advice.
For more information about the lawsuit and how to get involved, interested parties can visit the Gainey McKenna & Egleston website at Gainey McKenna & Egleston or contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. at (212) 983-1300 or via email at [email protected] or [email protected].