Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $50,000 In Allarity To Contact Him Directly To Discuss Their Options
If you suffered losses exceeding $50,000 in Allarity between May 17, 2022 and July 19, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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NEW YORK, Oct. 16, 2024 (GLOBE NEWSWIRE) — Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Allarity Therapeutics, Inc. (“Allarity” or the “Company”) (NASDAQ: ALLR) and reminds investors of the November 12, 2024 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Defendants had overstated the Dovitinib NDA’s continued regulatory prospects; (ii) 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; (iii) 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; (iv) 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 (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On June 29, 2022, Allarity issued a press release announcing that, “[e]ffective immediately,” it had appointed Defendant James G. Cullem (“Cullem”), the Company’s then-current Chief Business Officer, as its interim Chief Executive Officer (“CEO”), and Defendant Joan Y. Brown (“Brown”), the Company’s then-current Director of Financial Reporting, as its interim Chief Financial Officer (“CFO”), and that its former CEO Defendant Steve R. Carchedi (“Carchedi”) and former CFO Defendant Jens Knudsen (“Knudsen”) had both purportedly “stepped down from those roles to pursue other opportunities.”
The next day, Allarity disclosed in an U.S. Securities and Exchange Commission (“SEC”) filing that Defendants Carchedi and Knudsen had either “resigned” or been “terminat[ed]” from all positions with the Company and its subsidiaries, while indicating that such “resignation” or “termination” may have been for cause, but without clarifying the same.
Following these disclosures, Allarity’s stock price fell $0.31 per share, or 19.02%, to close at $1.32 per share on June 30, 2022.
On August 2, 2022, Allarity issued a press release announcing that “its Board of Directors has mandated a refocus of the Company’s oncology pipeline strategy away from development of monotherapies” and, accordingly, “determined that advancing dovitinib as a monotherapy in adults is no longer commercially viable or in the best interests of its shareholders,” citing “feedback that the Company recently received from the [FDA] from a Type C advisory meeting held in Q2 2022, regarding a potential Phase 3 clinical development path for dovitinib as a monotherapy third-line treatment for metastatic [RCC].” Accordingly, the Company would no longer pursue the Dovitinib NDA, which sought approval of Dovitinib as a monotherapy.
On this news, Allarity’s stock price fell $0.045 per share, or 3.688%, to close at $1.175 per share on August 2, 2022.
On February 6, 2023, Allarity disclosed in an SEC filing that, “[i]n January 2023, we 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 $0.009 per share, or 3.8%, to close at $0.228 per share on February 6, 2023.
On December 11, 2023, Allarity disclosed in another SEC filing that, “[o]n December 8, 2023, [Defendant] Cullem was terminated as [CEO] of Allarity . . . and all other positions with the Company and its subsidiaries” and that Defendant Thomas Jensen had been appointed as the Company’s new CEO on the same date.
On this news, Allarity’s stock price fell $0.075 per share, or 13.37%, to close at $0.486 per share on December 11, 2023.
Then, on July 22, 2024, Allarity disclosed in yet another SEC filing that it had received a Wells Notice from the SEC’s staff “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”-the same number of Company officers terminated during the Class Period-“received Wells Notices from the SEC relating to the same conduct.”
On this news, Allarity’s stock price fell $0.004 per share, or 2.38%, to close at $0.164 per share on July 22, 2024.
Finally, on September 13, 2024, Allarity disclosed in yet another SEC filing that, “[o]n September 12, 2024, the Company received a notice of resignation from [Defendant] Brown, its [CFO], effective September 12, 2024.”
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. 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. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Allarity’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the Allarity Therapeutics class action, go to www.faruqilaw.com/ALLR or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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