San Diego, CA -- (ReleaseWire) -- 05/14/2014 -- An investor, who purchased shares of Immunomedics, Inc. (NASDAQ:IMMU), filed a lawsuit in the U.S. District Court for the District of New Jersey over alleged violations of Federal Securities Laws by Immunomedics, Inc. in connection with certain allegedly false and misleading statements made between May 9, 2013 and October 9, 2013.
Investors who purchased shares of Immunomedics, Inc. (NASDAQ:IMMU) have certain options should contact the Shareholders Foundation at Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
In July 2008, I Immunomedics, Inc. entered into a License and Collaboration Agreement (“Agreement”) with Nycomed GmbH , whereby Immunomedics, Inc. issued Nycomed GmbH a worldwide license to develop, manufacture and commercialize one of its most advanced therapeutic compounds, Veltuzumab, a humanized monoclonal antibody for the treatment of all non-cancer indications. In September 2011, Nycomed GmbH was acquired by Takeda Pharmaceutical Company (“Takeda-Nycomed”.
According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired securities of Immunomedics, Inc. (NASDAQ:IMMU) between May 9, 2013 and October 9, 2013, that Immunomedics, Inc. and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
More specifically, the plaintiff claims that unbeknownst to investors prior to May 9, 2013 and between May 9, 2013 and October 9, 2013 Immunomedics, Inc and Takeda-Nycomed were embroiled in an on-going dispute regarding what Immunomedics, Inc considered to be an unacceptable delay in the development of Veltuzumab.
On May 14, 2013 Immunomedics, Inc provided Takeda-Nycomed with a formal notification that, as a result of the delays in the development in Veltuzumab, it considered Takeda-Nycomed to be in “material breach” of the Agreement and that the Agreement would terminate if the breach remained uncured.
The plaintiff alleges that defendants continued to make positive statements about Veltuzumab and its related development by Takeda-Nycomed. Shares of Immunomedics, Inc. (NASDAQ:IMMU) grew from $2.29 per share in March 2013 to $7.141 on October 2, 2013.
However, then on October 9, 2013, Immunomedics, Inc. announced that the Company has received notification from Takeda Pharmaceutical Company of the termination of the licensing agreement signed between Nycomed GmbH and Immunomedics, Inc. for the worldwide rights to veltuzumab, the humanized anti-CD20 antibody, for all non-cancer indications. Shares of Immunomedics, Inc. declined from over $7 per share in early October 2013 to as low as $3.42 per share in early November 2013.
On May 12, 2014, NASDAQ:IMMU shares closed at $3.33 per share.
Those who purchased shares of Immunomedics, Inc. (NASDAQ:IMMU) have certain options and should contact the Shareholders Foundation.
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