SHAREHOLDER ALERT: Pomerantz Law Firm Announces the Filing of a Class Action against Keryx Biopharmaceuticals, Inc. and Cer...
August 05 2016 - 4:43PM
Pomerantz LLP announces that a class action lawsuit has been filed
against Keryx Biopharmaceuticals, Inc. (“Keryx” or the “Company”)
(NASDAQ:KERX) and certain of its officers. The class action,
filed in United States District Court, Southern District of New
York, and docketed under 16-cv-06233, is on behalf of a class
consisting of all persons or entities who purchased or otherwise
acquired Keryx securities between February 25, 2016 and July 29,
2016 inclusive (the “Class Period”). This class action seeks
to recover damages against Defendants for alleged violations of the
federal securities laws under the Securities Exchange Act of 1934
(the “Exchange Act”).
If you are a shareholder who purchased Keryx
securities during the Class Period, you have until October 3, 2016
to ask the Court to appoint you as Lead Plaintiff for the
class. A copy of the Complaint can be obtained at
www.pomerantzlaw.com. To discuss this action, contact Robert
S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or
888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail
are encouraged to include their mailing address, telephone number,
and number of shares purchased.
[Click here to join this class action]
Keryx is a biopharmaceutical company focused on
marketing therapies for patients with renal disease. The Company’s
product, Auryxia (ferric citrate), also known as Riona in Japan and
Fexeric in Europe, is an oral, absorbable iron-based compound, that
received marketing approval from the U.S. Food and Drug
Administration (“FDA”) in September 2014 for the control of serum
phosphorus levels in patients with chronic kidney disease (“CKD”)
on dialysis.
The Complaint alleges that throughout the Class
Period, Defendants made materially false and/or misleading
statements, as well as failed to disclose material adverse facts
about the Company’s business, operations, and prospects.
Specifically, Defendants made false and/or misleading statements
and/or failed to disclose that: (i) the Company was experiencing
production-related difficulties in converting API to finished drug
product; (ii) the foregoing difficulties were resulting in
decreased production yields of finished drug product; (iii)
consequently, the Company would exhaust its reserve of finished
drug product; and (iv) as a result of the foregoing, Defendants’
statements about Keryx’s business, operations, and prospects, were
false and misleading and/or lacked a reasonable basis.
On August 1, 2016, pre-market, Keryx announced that
it had determined that a supply interruption of Auryxia was going
to occur due to a production-related issue in converting active
pharmaceutical ingredient (“API”) to finished drug product at its
contract manufacturer. The Company also disclosed that this issue
has resulted in variable production yields of finished drug
product, and that as a result, the Company had exhausted its
reserve of finished drug product. Finally, the Company stated that
it expects to restore adequate supply of Auryxia and make Auryxia
available to patients during the fourth quarter of 2016.
On this news, Keryx’s stock price fell $2.64 per
share, or 35.8%, to close at $4.72 per share on August 1, 2016, on
unusually heavy trading volume.
The Pomerantz Firm, with offices in New York,
Chicago, Florida, and Los Angeles, is acknowledged as one of the
premier firms in the areas of corporate, securities, and antitrust
class litigation. Founded by the late Abraham L. Pomerantz, known
as the dean of the class action bar, the Pomerantz Firm pioneered
the field of securities class actions. Today, more than 80 years
later, the Pomerantz Firm continues in the tradition he
established, fighting for the rights of the victims of securities
fraud, breaches of fiduciary duty, and corporate misconduct. The
Firm has recovered numerous multimillion-dollar damages awards on
behalf of class members. See www.pomerantzlaw.com
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
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