Kiromic Biopharma, Inc. (KRBP) Failed To Disclose In Its Offering Documents That The FDA Had Placed A Clinical Hold On Its Two Drug Candidates
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Kiromic Biopharma, Inc. (NASDAQ: KRBP) securities pursuant to the Company’s July 2021 initial public offering (“IPO”) for violations of the Securities Act of 1933, or between June 25, 2021 and August 13, 2021, for violations of of the Securities Exchange Act of 1934. Kiromic presents itself as a target discovery and gene-editing company that utilizes artificial intelligence to create immunotherapy products.
According to the complaint, the offering documents in support of the IPO contained untrue statements of material fact. The IPO was conducted pursuant to a registration statement filed with the SEC on June 25, 2021, and a final prospectus dated June 29, 2021. Prior to this time, on June 16 and 17, 2021, the Company received communications from the FDA that the FDA was placing the Company’s Investigational New Drug Applications for its two candidates on clinical hold. Rather than disclosing this information, Kiromic represented that clinical testing was expected to proceed in the third quarter of 2021. However, clinical testing did not proceed in the third quarter of 2021, nor was it likely given the FDA’s imposition of a clinical hold. When a proposed study is placed on clinical hold, no new subjects may be recruited for testing the drug and patients testing the drug must be taken off.
Next Steps: If you acquired shares of Kiromic Biopharma, Inc. pursuant to the Company’s IPO or between June 25, 2021 and August 13, 2021, you have until October 4, 2022, to ask the court to appoint you lead plaintiff for the class. 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.