LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired NextCure, Inc. (“NextCure” or the “Company”) (NASDAQ: NXTC): (a) securities between November 5, 2019 and July 14, 2020, inclusive (the “Class Period”); and/or (b) common stock pursuant or traceable to the Company’s November 2019 secondary public offering (“SPO” or the “Offering”). NextCure investors have until November 20, 2020 to file a lead plaintiff motion.
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In November 2019, NextCure completed its SPO, selling over 4 million shares at $36.75 per share.
On January 13, 2020, NextCure disclosed that Eli Lilly and Company had ended its collaboration agreement for the research and development of the Company’s leading product candidate, NC318, a first-in-class immunomedicine targeting the Siglec-15 immunomodulatory receptor particularly for patients with advanced or metastatic solid tumors.
On this news, the Company’s share price fell $4.70, or 8%, to close at $52.00 per share on January 13, 2020, thereby injuring investors.
Then, on July 13, 2020, before the market opened, NextCure announced that it was no longer planning to “advance the non-small cell lung cancer (NSCLC) and ovarian cancer cohorts in the stage 2 portion of the Simon 2-stage trial.” The same day, the Company announced that its Chief Medical Officer resigned.
On this news, the Company’s share price fell $9.73, or 54%, to close at $8.15 per share on July 13, 2020, thereby injuring investors further.
The complaint filed in this class action alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company possessed NC318 data that showed a lack of efficacy and objective responses; (2) as a result, NC318 was not, in fact, effective in treating most tumor types; (3) as a result, the NC318 application was proving to be limited (if even useful at all); (4) as a result of the foregoing, there was a significant realizable risk that NC318 would not be nearly as popular as then-existing blockbuster drugs, such as Keytruda.
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If you purchased NextCure securities during the Class Period, you may move the Court no later than November 20, 2020 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased NextCure securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to firstname.lastname@example.org, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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