SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/mannkind/) today announced that a class action has been commenced in the United States District Court for the Central District of California on behalf of purchasers of MannKind Corporation (“MannKind”) (NASDAQ:MNKD) common stock during the period between June 25, 2010 and January 19, 2011 (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, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at djr@rgrdlaw.com. 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/mannkind/. 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 MannKind and certain of its officers and directors with violations of the Securities Exchange Act of 1934. MannKind is a biopharmaceutical company focused on the discovery, development and commercialization of therapeutic products for diseases, such as diabetes and cancer, including its lead product candidate, AFREZZA® (insulin human [rDNA origin]) Inhalation Powder (“AFREZZA”) for the treatment of adult patients with Type 1 and Type 2 diabetes.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and prospects for AFREZZA. Specifically, defendants continuously hyped AFREZZA for the treatment of adult patients with Type 1 and Type 2 diabetes for the control of hyperglycemia, telling market observers that AFREZZA was one of the most valuable products in the history of drug making, while failing to disclose that MannKind’s platform would require better information for patients about the risks of AFREZZA. As a result of defendants’ false statements, MannKind’s stock traded at artificially inflated prices during the Class Period, reaching a high of $9.83 per share on January 18, 2011.
Then, on January 19, 2011, shortly before the market closed, MannKind issued a press release announcing that the Company had received a complete response letter from the U.S. Food and Drug Administration (“FDA”) pertaining to the Company’s New Drug Application for AFREZZA. The FDA deferred approving AFREZZA and requested two additional clinical trials with the inhaler. Prior to this news being released on January 19, 2011, MannKind’s stock began dropping as news of the FDA deferral leaked into the market. The complaint alleges that, in fact, the FDA notice had been received on January 18, 2011, and defendants had held off informing shareholders. Trading was halted in MannKind stock on January 19, 2011, and when trading resumed the next day, MannKind’s stock plunged $2.94 per share to close at $6.17 per share on January 20, 2011, a one-day decline of 32% on volume of over 34 million shares.
According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) the Company failed to disclose that the FDA had issues with the clinical utility of AFREZZA which might inhibit approval; (b) AFREZZA was a riskier product than investors were led to believe and would require additional risk disclosure to patients if approved; (c) the reasons for the FDA’s delay in approval of AFREZZA prior to the beginning of the Class Period were not limited to the inspection of the European facility as defendants had stated; and (d) given these factors, defendants knew it was highly doubtful that FDA approval would be forthcoming.
Plaintiff seeks to recover damages on behalf of all purchasers of MannKind 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, a 180-lawyer firm with offices in San Diego, San Francisco, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Robbins Geller Web site (http://www.rgrdlaw.com) has more information about the firm.