Federman & Sherwood Announces the Filing of a Securities Class ActionLawsuit against MannKind Corp.
Oklahoma City, OK (January 20, 2016) – On January 15, 2016, a securities class action lawsuit was filed in the United States District Court for the Central District of California against MannKind Corp. (NASDAQ: MNKD). 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 August 10, 2015 through January 5, 2016. More specifically, this litigation was filed because on September 24, 2014, MannKind announced that it had entered in a worldwide collaboration and licensing agreement with sanofi-aventis U.S. LLC ("Sanofi") for the development and commercialization of Afrezza. The U.S. Food and Drug Administration was concerned for the use of an inhaled insulin with people who suffer from serious pulmonary disease, and therefore, imposed strict guidelines for the prescribing of Afrezza and ongoing monitoring of patients, including testing if a patient has an existing significant pulmonary disease. Among these tests, patients were mandated to have a physical examination and take a spirometry – a lung test to identify any underlying lung disease.
On August 10, 2015, MannKind held a conference call stating that “Sanofi had made excellent moves to address the spirometry requirements and our research shows that it’s no longer a critical gating item.” However, the complaint alleges, MannKind failed to disclose that contrary to the company's assurances, the mandated spirometry was still a significant issue impeding sales of Afrezza.
On January 5, 2016, MannKind issued a press release announcing the termination of its agreement with Sanofi. On this newsMannKind’s stock fell to close at $0.73 per share on January 6, 2015.
Plaintiff seeks to recover damages on behalf of all MannKind Corp. 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 Wednesday, March 16, 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, January 20, 2016
by Robin Hester filed under