LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, announces that a class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired Allarity Therapeutics, Inc. (“Allarity” or the “Company”) (NASDAQ: ALLR) securities between May 17, 2022 and July 19, 2024, inclusive (the “Class Period”). Allarity investors have until November 12, 2024 to file a lead plaintiff motion.
If you suffered a loss on your Allarity investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/Allarity-Therapeutics-Inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.
On February 6, 2023, Allarity disclosed that it had “received a letter to produce documents from the SEC and that stated that the staff of the SEC is conducting an investigation . . . to determine if violations of the federal securities laws have occurred” in connection with “disclosures relating to submissions, communications and meetings with the FDA regarding our NDA for Dovitinib or Dovitinib-DRP.” On this news, Allarity’s stock price fell 3.8% to close at $0.228 per share on February 6, 2023.
Then, on December 11, 2023, Allarity disclosed that its CEO had been terminated from his role “and all other positions with the Company and its subsidiaries.” On this news, Allarity’s stock price fell 13.4% to close at $0.486 per share on December 11, 2023.
Then, on July 22, 2024, Allarity disclosed that it had received a Wells Notice from the SEC “relating to the Company’s previously disclosed SEC investigation,” advising that “[t]he Wells Notice relates to the Company’s disclosures regarding meetings with the [FDA] regarding the Company’s NDA for Dovitinib or Dovitinib-DRP, which was submitted to the FDA in 2021”; that, per the Company’s understanding, “all conduct relating to the SEC Wells Notice occurred during or prior to fiscal year 2022”; and “that three of its former officers received Wells Notices from the SEC relating to the same conduct.” On this news, Allarity’s stock price fell $0.004, or 2.4%, to close at $0.164 per share on July 22, 2024, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, 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) Defendants had overstated the Dovitinib NDA’s continued regulatory prospects; (2) Allarity and three of its former officers had engaged in illegal, illicit, and/or otherwise improper conduct in connection with the Dovitinib NDA and/or the Dovitinib-DRP PMA; (3) the foregoing misconduct subjected the Company to an increased risk of regulatory and/or governmental scrutiny and enforcement action, as well as significant legal, monetary, and reputational harm; (4) following Allarity’s announcement that it was, in fact, being investigated for wrongdoing in connection with the Dovitinib NDA and/or the Dovitinib-DRP PMA, the Company downplayed the substantial likelihood that an enforcement action would result from such investigation; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased or otherwise acquired Allarity securities during the Class Period, you may move the Court no later than November 12, 2024 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 wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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