Kempf v. Corbus Pharmaceutical Holdings, Inc. et al 1:19-cv-10457-MBB — On March 12, 2019, investors sued Corbus Pharmaceutical Holdings, Inc. (“Corbus” or “the Company”) in United States District Court, District of Massachusetts. Plaintiffs in the CRBP class action allege that they acquired Corbus stock at artificially inflated prices between November 14, 2016 and February 28, 2019 (the “Class Period”). They are now seeking compensation for financial losses incurred upon public revelation of the Company’s alleged misconduct during that time. For more information on the CRBP Lawsuit, please contact us today!
Summary of the Allegations
Corbus (NASDAQ: CRBP) is a clinical stage drug company devoted to the creation and marketing of new medicine for the treatment of “inflammatory and fibrotic diseases.”
According to its website, the Company leverages its “industry-leading pipeline of endocannabinoid system-targeting drug candidates” to accomplish its objectives. Corbus also touts its lead product candidate, lenabasum, as “a novel, synthetic, oral, selective cannabinoid receptor type 2 (CB2) agonist designed to resolve chronic inflammation and fibrotic processes.”
The Company’s claims about lenabasum are at the crux of the March 12 complaint.
Summary of Facts
Corbus and two of its senior officers (the “Individual Defendants”) now stand accused of deceiving investors by lying and/or withholding critical information during the Class Period.
Specifically, they are accused of omitting truthful information about lenabasum from SEC filings and related material. By knowingly or recklessly doing so, they allegedly caused Corbus stock to trade at artificially inflated prices during the time in question.
The truth came out in a February 28, 2109 article published on Seeking Alpha. Among other things, the article alleged that lenabasum, which was formerly known by other names, including anabasum, resunab and JBT-101, “failed every previous trial.” Specifically, the article alleged that the Company “changed the primary efficacy endpoint” of one study after it was “unblended to the results.” It also alleges that the Company’s “secondary endpoint data in its Phase 2 SSc trial also failed.”
A closer look…
As alleged in the March 12 complaint, Corbus and/or the Individual Defendants repeatedly made false and misleading public statements during the Class Period.
For example, on a form filed with the SEC at the beginning of the Class Period, the Company stated in pertinent part: “JBT-101 out-performed placebo in the American College of Rheumatology (ACR) Combined Response Index in diffuse cutaneous Systemic Sclerosis (CRISS) score, reaching 33% at week 16, versus 0% for placebo.”
Then, on another form filed with the SEC on March 30, 2017, Corbus stated in pertinent part: “…the Company announced positive topline data from its Phase 2 study evaluating multiple doses of anabasum (fka JBT-0101 or Resunab) compared to placebo for the treatment of patients with cystic fibrosis (‘CF’).”
Finally, on a form filed with the SEC on November 8, 2017, the Company also stated in pertinent part: “In November 2016, we reported positive clinical data in a Phase 2 anabasum study for the treatment of systemic sclerosis. Following an end-of-Phase 2 meeting with the FDA, we submitted a protocol to the FDA on March 31, 2017 for a Phase 3 study in systemic sclerosis. We also received protocol assistance from the EMA on the Phase 3 study design. We expect to commence the Phase 3 study in systemic sclerosis in the fourth quarter of 2017.”
Impact of the Alleged Fraud on Corbus’s Stock Price and Market Capitalization
|Closing stock price the trading day after disclosures:
The following chart illustrates the stock price during the class period:
Actions You May Take
If you have purchased shares during the Class Period, you may join the class action as a lead plaintiff, remain a passive class member, or opt out of this litigation and pursue individual claims that may not be available to the class as a whole.
NOTE: The deadline to file for lead plaintiff in this class action is May 13, 2019. You must file an application to be appointed lead plaintiff prior to this deadline in order to be considered by the Court. Typically, the plaintiff or plaintiffs with the largest losses are appointed lead plaintiff.
In order to identify your potential exposure to the alleged fraud during the time in question, you may wish to perform an analysis of your transactions in Corbus common stock using court approved loss calculation methods.
Recently Filed Cases
Listed below are recently filed securities class action cases being monitored by us, along with the class period and the deadline to file a motion to be appointed as the Lead Plaintiff in the action. Please contact us if you would like an LK report for any of these cases:
Levi & Korsinsky is a leading securities litigation firm with a hard-earned reputation for protecting investors’ rights and recovering losses arising from fraud, mismanagement and corporate abuse. With thirty attorneys and offices in New York, Connecticut, California and Washington D.C., the firm is able to litigate cases in various jurisdictions in the U.S., England, and in other international jurisdictions.
Levi & Korsinsky provides portfolio monitoring services for high-net worth investors and institutional clients. Our firm also assists investors in evaluating whether to opt-out of large securities class actions to pursue individual claims.