HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Updates ATNX, LDOS, IQDAX; IQDNX Investors on Securities Fraud Lawsuits, Encourages Investors with Losses to Contact the Firm
SAN FRANCISCO, CA / ACCESSWIRE / April 15, 2021 / Hagens Berman updates investors in the following publicly-traded companies and urges investors who have suffered significant losses to contact the firm. Further details about the cases, including important upcoming deadlines, can be found at the links provided.
ATNX Investors Click Here.
LDOS Investors Click Here.
IQDAX; IQDNX Investors Click Here.
Athenex, Inc. (NASDAQ:ATNX) Securities Class Action:
Class Period: Aug. 7, 2019 - Feb. 26, 2021
Lead Plaintiff Deadline: May 3, 2021
Visit:www.hbsslaw.com/investor-fraud/ATNX
Contact An Attorney Now:ATNX@hbsslaw.com
844-916-0895
The Complaint alleges that throughout the Class Period, Defendants made false statements and omissions about its flagship drug candidate, an oral paclitaxel and encequidar for the treatment of metastatic breast cancer.
Specifically, Defendants misrepresented and concealed that: (i) the data included in the Oral Paclitaxel plus Encequidar New Drug Application presented a safety risk to patients; (ii) there was uncertainty over the results of the primary endpoint of objective response rate (ORR), which might have introduced unmeasured bias and influence on the blinded independent central review (BICR); (iii) the Company's Phase 3 study did not include a representative population; and (v) as a result, it was foreseeable that the FDA would not approve the Company's NDA in its current form.
On Mar. 1, 2021, the market learned the truth when Athenex announced it received the FDA's complete response letter ("CRL") to the NDA for oral paclitaxel plus encequidar. In the CRL, the FDA cited safety risks to patients in terms of an increase in neutropenia-related sequalae. The CRL also cited uncertainty over the results of the primary endpoint of the ORR at week 19, which might have introduced unmeasured bias and influence on the BICR. The FDA further recommended that "Athenex conduct a new adequate and well-conducted clinical trial in a patient population with metastatic breast cancer representative of the population in the U.S."
On this news, shares of Athenex stock fell approximately 55% in one day.
"We're focused on investors' losses and proving Athenex intentionally misled investors about its leading drug candidate," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are an Athenex investor and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Leidos Holdings, Inc. (NYSE:LDOS) Securities Fraud Class Action:
Class Period: May 4, 2020 - Feb. 23, 2021
Lead Plaintiff Deadline: May 3, 2021
Visit:www.hbsslaw.com/investor-fraud/LDOS
Contact An Attorney Now:LDOS@hbsslaw.com
844-916-0895
The complaint centers on the accuracy of defendants' statements about Leidos' SD&A business, which the company acquired from L3Harris Technologies in May 2020 for $1 billion and touted as having compelling strategic and operational benefits.
Specifically, defendants materially overstated the benefits of the acquisition and did not disclose that Leidos' products suffered from numerous product defects that included faulty explosive detection systems at airports, ports and borders. As a result, the company's financial results were significantly overstated.
The truth emerged through a series of partial disclosures beginning on Feb. 16, 2021 when analyst Spruce Point published a scathing report concluding that Leidos had "wasted" $1b on the SD&A acquisition. Spruce Point stated, "We believe Leidos is potentially covering up at least $100m of fictitious sales, mischaracterizing $355 - $367m of international revenue." Spruce Point also alleged that the company is "concealing numerous product defects from investors, notably faulty explosive detection systems at airports and borders." Spruce Point further avers that management may be intentionally inflating certain of Leidos' financial metrics, including operating cash flow and organic sales growth, to obscure strains from investors.
Then, on Feb. 23, 2021, Leidos released mixed Q4 2020 financial results and disappointing 2021 outlook, including guided revenue and EPS well below analyst consensus. The same day, Spruce Point highlighted the poor 2021 outlook and picked up on a SD&A accounting discrepancy, tweeting "[t]his asset is a total black box."
Finally, on Feb. 24, 2021 Spruce Point highlighted that Leidos "materially expanded" its risk disclosures in its 2020 annual report, tweeting "[w]e believe it is validating all the major points of our report."
On this news, several analysts reduced their price targets for Leidos shares. For example, on Feb. 26, 2021 Jefferies slashed its price target from $125 to $115 and, on Mar. 10, 2021, Morgan Stanley reportedly lowered its price target from $113 to $105.
"We're focused on investor losses and proving Leidos misled investors about its SD&A business," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Leidos investor, click here to discuss your legal rights with Hagens Berman.
Infinity Q Diversified Alpha Fund (NASDAQ:IQDAX)(NASDAQ:IQDNX) Securities Fraud Class Action:
Class Period: Dec. 21, 2018 - Feb. 22, 2021
Lead Plaintiff Deadline: Apr. 27, 2021
Visit:www.hbsslaw.com/investor-fraud/IQDAX
Contact An Attorney Now:IQDAX@hbsslaw.com
844-916-0895
The complaint alleges defendants misrepresented and concealed that (1) the Fund's Chief Investment Officer manipulated variables going into valuation of significant Fund assets, (2) as a consequence, the Fund and its advisor would not be able to correctly calculate the Fund's net asset value ("NAV"), (3) previously reported NAVs were unreliable, and (4) because of the foregoing the fund would halt redemptions and liquidate assets.
The truth emerged on Feb. 22, 2021, when Bloomberg published an article entitled "Mutual Fund Locks Out Founder After SEC Questions Swaps Pricing" reporting that the fund's advisor (1) cut off founder, majority owner, and CIO James Velissaris' access to accounts and trading, and (2) had verified that Velissaris did in fact access and alter the third-party valuation models pertaining to hundreds of millions of dollars of swaps.
Most recently, on Mar. 29, 2021 Institutional Investor reported that as of Mar. 25, 2021, Infinity Q calculated the NAV for the fund to be $1.25 billion, about $477.7 million (27%) lower than the Feb. 18, 2021 NAV calculation.
"We're focused on investors' losses and proving defendants intentionally inflated the fund's NAV," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are an Infinity Q Diversified Alpha Fund investor and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Athenex, Leidos, and/or Infinity Q Diversified Alpha Fund should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email ATNX@hbsslaw.com, LDOS@hbsslaw.com, and/or IQDAX@hbsslaw.com.
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About Hagens Berman
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Contact:
Reed Kathrein
844-916-0895
SOURCE: Hagens Berman Sobol Shapiro LLP
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