Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Immunomedics, Inc.
NEW YORK--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/immunomedics/) today announced that a class action has been commenced in the United States District Court for the District of New Jersey on behalf of purchasers of Immunomedics, Inc. (“Immunomedics”) (NASDAQ:IMMU) common stock during the period between May 9, 2013 and October 9, 2013 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/immunomedics/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Immunomedics and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Immunomedics is a biopharmaceutical company primarily focused on the development of monoclonal antibody-based products for the targeted treatment of cancer and autoimmune and other serious diseases.
In July 2008, Immunomedics entered into a License and Collaboration Agreement (the “Agreement”) with Nycomed GmbH (“Nycomed”), whereby the Company issued Nycomed 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. Immunomedics retained the rights to develop, manufacture and commercialize Veltuzumab in the field of oncology. In September 2011, Nycomed was acquired by Takeda Pharmaceutical Company (hereinafter referred to as “Takeda-Nycomed”). As a result of entering into the Agreement, Takeda-Nycomed was solely responsible for completing the clinical development of and obtaining all necessary regulatory approvals for Veltuzumab, as well as commercializing and manufacturing Veltuzumab for sale in non-cancer indications.
The complaint alleges that, during the Class Period, defendants made numerous positive statements about Veltuzumab and its related development by Takeda-Nycomed. Unbeknownst to investors however, prior to and during the Class Period, the Company and Takeda-Nycomed were embroiled in an on-going dispute regarding what Immunomedics considered to be an unacceptable delay in the development of Veltuzumab. In fact, on May 14, 2013, just three days after the beginning of the Class Period, Immunomedics 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. Thereafter, defendants continued to make positive statements about Veltuzumab and its related development by Takeda-Nycomed.
Then, on October 9, 2013, Immunomedics issued a press release announcing that the Agreement with Takeda-Nycomed had been terminated. On this news, Immunomedics common stock dropped 5.9%, on very heavy trading volume. Moreover, the previous day, October 8, 2013, Immunomedics common stock dropped nearly 12%, on very heavy trading volume, as news about the termination of the Agreement leaked into the market.
Plaintiff seeks to recover damages on behalf of all purchasers of Immunomedics common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in ten offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $2 trillion. The firm has obtained many of the largest recoveries and has been ranked number one in the number of shareholder class action recoveries in MSCI’s Top SCAS 50 every year since 2003. Please visit http://www.rgrdlaw.com for more information.