SAN DIEGO and MORRIS PLAINS, N.J., March 6, 2014 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of Immunomedics, Inc. (NASDAQ: IMMU) has filed a federal securities fraud class action complaint in the U.S. District Court for the District of New Jersey. The complaint alleges that the company and certain of its officers and directors violated the Securities and Exchange Act of 1934 between May 9, 2013 and October 9, 2013 (the "Class Period"). Immunomedics is a biopharmaceutical company which focuses on the development of monoclonal antibody-based products for the targeted treatment of cancer, autoimmune, and other serious diseases.
Immunomedics Is Accused of Misleading Investors
According to the complaint, shares of Immunomedics stock fell $0.80 per share, or nearly 12%, to close at $5.95 per share on October 8, 2013, as news leaked that the company's License and Collaboration Agreement with Nycomed GmbH had been terminated. Under the agreement, Immunomedics granted Nycomed the right to develop, manufacture, and commercialize Veltuzumab, the Company's humanized anti-CD20 antibody, in the subcutaneous formulation, for the treatment of all non-cancer indications worldwide. By terminating this agreement, Immunomedics would lose one of only two significant sources of revenue available to the company. On October 9, 2013, Immunomedics officially revealed that it was terminating the agreement and that it had warned Nycomed in May 2013 that Nycomed was in material breach of the agreement. On this news, Immunomedics stock fell $0.35 per share, or 5.88%, to close at $5.60 per share.
The complaint further alleges that, among other things, Immunomedics made materially false and misleading statements or failed to disclose that: (i) the Company had been in an on-going and material dispute with Nycomed regarding the development of Veltuzumab; and (ii) the Company considered Nycomed to have been in "material breach" of the agreement since May 2013. As a result, Immunomedics' positive statements about Veltuzumab were misleading throughout the Class Period.
Immunomedics Shareholders Are Encouraged to Contact Shareholder Rights Law Firm Robbins Arroyo
If you invested in Immunomedics and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the information form on the firm's shareholder rights blog: www.robbinsarroyo.com/shareholders-rights-blog/immunomedics
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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SOURCE Robbins Arroyo LLP