Infinity Pharmaceuticals, Inc. (INFI) Misled Investors Regarding its Business Prospects
A shareholder filed a class action on behalf of persons and entities that purchased or otherwise acquired Infinity Pharmaceuticals, Inc. (NASDAQ: INFI) securities between January 5, 2023 and July 24, 2023. Infinity is a clinical-stage biopharmaceutical company focusing on developing novel medicines for people with cancer.
According to the complaint, for over a year, defendants pushed the false narrative that Infinity’s flagship product, eganelisib, was proceeding apace in its clinical studies as a treatment for breast cancer. Results were initially so promising that partners were being sought (and prospective partners were interested) to bring eganelisib to the next stage. Then, on February 23, 2023, Infinity announced it had entered into a merger agreement with MEI Pharma, Inc. and the new entity would “prioritize head and neck cancer.” On this news, the price of Infinity’s stock fell from $0.55 on February 23, 2023, to $0.28 on February 23, 2023.
On July 24, 2023, Infinity announced it was terminating the merger because MEI did not obtain stockholder approval for the merger. On this news, Infinity’s stock price fell 40%, to close at $0.22. The next day, Infinity announced a “Value Preservation and Maximization Plan”, whereby it was, among other things, terminating 78% of its workforce.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Infinity Pharmaceuticals, Inc. Shareholders who want to act as lead plaintiff for the class should contact Robbins LLP for more information. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
