A securities class action suit was filed against a biopharmaceutical company following allegations that it issued false and misleading statements and/or failed to disclose relevant information to investors.
The lawsuit against Mannkind Corporation was filed in the U.S. District Court for the Central District of California on behalf of investors who purchased shares in the company during the class period between Aug. 10, 2015 and Jan. 5, 2016, according to a press release.
“The company may have mishandled Afrezza.”
Mannkind is a biopharmaceutical company that focuses on the discovery, development and commercialization of treatments for diseases such as diabetes. The company recently attempted to resuscitate the inhaled insulin medication Afrezza, which previously failed to gain much steam under the guidance of Sanofi, according to FiercePharma. In January Sanofi ended its marketing contract with Afrezza after the treatment failed to catch on. In 2015, the drug managed to bring in a mere $7.5 million.
Despite evidence that many diabetes patients simply won’t stay on a drug delivered via inhaler, the media outlet reported that Matthew Pfeffer, the CEO of Mannkind, is determined that Afrezza is something that the market wants. He believes that Afrezza should be priced lower and have better coverage from payers.
The class action complaint against Mannkind alleges that the company may have mishandled Afrezza. The lawsuit claims that the company made false and misleading statements and/or failed to disclose that mandatory pulmonary testing or spirometry were presenting problems that hindered sales of the inhaled diabetes treatment. This came despite the company’s alleged assurances to the contrary. As a result, the class action lawsuit claims that the company’s statements about its operations, business and prospects were false and misleading and/or lacked reasonable basis during the relevant class period.
For more information on this case or other class action litigations, please contact Adam Foulke at 203-987-4949 or info@battea.com.