Allarity Therapeutics, Inc., listed on NASDAQ as ALLR, is currently embroiled in a class action lawsuit with a deadline fast approaching. Investors have until November 12, 2024, to file as lead plaintiffs in a case spanning from May 17, 2022, to July 19, 2024. The allegations stem from purportedly misleading statements and misconduct surrounding the company’s regulatory affairs.
Legal Turmoil Unveiled
In a series of disclosures, the company faced setbacks starting in February 2023 when it was revealed that the SEC was investigating potential violations of federal securities laws. The news resulted in a 3.8% drop in Allarity’s stock price. Subsequently, on December 11, 2023, the CEO’s termination led to a 13.4% decline, further impacting investors.
Recent Developments
In a recent blow, on July 22, 2024, Allarity received a Wells Notice from the SEC related to its prior disclosures. The notice implicated former officers as well and caused a 2.4% dip in the stock price, compounding the existing investor woes.
Allegations Unveiled
The class action complaint alleges that throughout the specified period, Allarity failed to provide accurate information to investors. Claims include overestimating regulatory prospects, engaging in improper conduct related to the Dovitinib NDA, and downplaying enforcement risks. Consequently, investors were misled about the company’s true position and faced significant financial repercussions.
Seeking Legal Recourse
Investors who bought Allarity securities during the Class Period have until the November deadline to seek appointment as lead plaintiffs in the lawsuit. They are not required to take immediate action but can opt to retain counsel or remain as absent members. For further information or queries, Charles Linehan of GPM can be contacted.
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