Pomerantz has been appointed Lead Counsel in the federal securities class action against Hemispherx Biopharma, Inc.
Pomerantz LLP has filed a class action lawsuit against Hemispherx Biopharma, Inc. (“Hemispherx” or the “Company”)(NYSE: HEB) and certain of its officers. The class action filed in United States District Court, Eastern District of Pennsylvania, on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of Hemispherx between March 19, 2012 and December 17, 2012, both dates inclusive (the “Class Period”). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
Hemispherx is a biopharmaceutical company that focuses on the development of nucleic acids to enhance the natural anti-viral defense systems of the human body. The Company’s lead product, Ampligen® (“Ampligen”), is undergoing clinical trials for the treatment of Myalgic Encephalomylitis/Chronic Fatigue Syndrome.
The Complaint alleges that throughout the Class Period, the Company made a host of materially false and misleading statements regarding the safety and efficacy of Ampligen, and touted purportedly positive results from Ampligen’s clinical trials. As a result of the foregoing, the Company’s statements were materially false and misleading at all relevant times.
On December 18, 2012, the FDA published an FDA staff report concerning Ampligen’s safety and efficacy. Specifically, the report concluded that the Company’s studies were “ill-defined and invalid” with signals of efficacy that were inconsistent between clinical trials, and based on the limited quality of the data, “it is difficult to draw conclusions regarding potential safety signals,” but the “review identified nine potential safety concerns associated with Ampligen.”
As a result of this disclosure, Hemispherx shares declined $0.276 per share or nearly 43%, to close at $0.368 per share on December 18, 2012.
As a result of Company’s wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, Class members have suffered significant damages.