Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Keryx Biopharmaceuticals, Inc.
Oklahoma City, OK (August 31, 2016) – On August 26, 2016, a securities class action lawsuit was filed in the United States District Court for the District of Massachusetts against Keryx Biopharmaceuticals, Inc. (NASDAQ: KERX). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is September 2, 2013 through August 1, 2016. More specifically, this litigation was filed because the Company made false and/or misleading statements and/or failed to disclose: (1) that the Company intended to and did contract with only a single contract manufacturer; (2) that the Company lacked adequate inventory controls; (3) that at some point during the Class Period, defendants became aware but did not disclose that its contract manufacturer was experiencing difficulties in production; (4) that these production difficulties would cause the depletion of Keryx's Auryxia inventory, and (5) that, as a result, the Company's financial guidance and statements about Keryx's business, operations, and prospects, were false and misleading.
On August 1, 2016, the Company announced that due to a “production-related issue” with the Company’s only drug manufacturer, patients who use Keryx's kidney drug Auryxia (the Company's only marketed product) will face a supply interruption until at least October. Keryx also withdrew its full-year forecast regarding both sales and financial results. On this news, the Company’s shares fell to close at $4.72 per share.
Plaintiff seeks to recover damages on behalf of all Keryx Biopharmaceuticals, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Tuesday, October 25, 2016 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to firstname.lastname@example.org, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.
Posted on Wed, August 31, 2016
by Robin Hester filed under