TG Therapeutics is being charged in a class action suit, according to recent news releases in San Diego. TG, a biopharmaceutical company, is known for their treatments for autoimmune diseases as well as B cell related malignancies. The treatments which were commercialized are new to the scientific community. Recently, TG has been focusing on the production of hematologic malignancy treatment which will work against an epitope in B-lymphocytes. The drug is said to be taken orally and is in Phase 3 of the trial process. It was hoped to be a huge advancement in the treatment of lymphocytic leukemia.
The company’s CEO allegedly violated the Securities Exchange Act of 1934 by making untrue claims about the product and the company’s future intentions with it. Unfortunately, due to the mistruths, the company saw stock rise up to 14.70 per share, reaping the advantages of the potential success of a product they knew to be a failure. During a data collection procedure, TG Therapeutics learned that the product was failing in trials but didn’t share this information with shareholders or the public.
Although the news that the trial had failed was finally released on September 25 via a press release, it had already reaped rewards for its potential in the medical industry. Following the announcement, TG watched stocks fall by more than 40%, seeing a decline in stock prices to around $5 per share, a far cry from where it had been weeks before.
The class action suit seeks to retrieve damages for stock holders who had invested in the company under false pretenses that the product was doing well and would be released for use in the medical world. Lead by Johnson Fistel, a prosecutor with vast knowledge and experience in the realm of class-action suits, particularly those involving finances and deceiving shareholders, those involved in the case hope to see the profits they were promised while TG covered up the failure of its latest product trials.
Nurses and doctors alike in San Diego and across the United States could have seen great success with this product in the field of leukemia treatment and may now be at a loss for equal treatment. While TG has been clear in their efforts to continue working on products which may improve the medical world and autoimmune diseases, shareholders are not content and wish to be paid for their investments.
Johnson Fistel, LLP, has national recognition as an attorney undertaking cases of fraud and winning. His class action cases have seen vast success, which stand as a precedent for the future of this suit. Currently, the stance of TG against this class action is unclear, but their legal team is sure to be hard at work deciding on a plan. Will TG settle, or will the trial go to court? This is unclear, but one thing is for certain, the company will have some answering to do for their negligence and misguidance to shareholders while the trials commence. Shareholders will have to keep a keen eye on the case to see where it goes from here.