Securities Fraud Lawsuit Filed Against Fennec Pharmaceuticals (FENC)
A securities fraud lawsuit has been filed against Fennec Pharmaceuticals, Inc. (NASDAQ: FENC) for potential securities violations on behalf of shareholders who purchased shares anytime during the period from May 28, 2021 through November 26, 2021. The release of potentially misrepresentative and misleading information, as well as failure to disclose material adverse facts to the public may have resulted in material losses for shareholders. The class action lawsuit has already been filed.
Copy of Complaint Against Fennec Pharmaceuticals
Allegations Against FENC
On November 29, 2021, before the market opened, Fennec Pharmaceuticals issued a press release announcing that it expects to receive a Complete Response Letter from the U.S. Food and Drug Administration regarding its resubmitted PEDMARK New Drug Application. Specifically, Fennec stated that the FDA had indicated that, “following a recent completion of a pre-approval inspection of the manufacturing facility of our drug product manufacturer, deficiencies have been identified.” On this news, on November 29, 2021 Fennec’s stock fell approximately 50%, from $9.64 to close at $4.78 per share.
Misleading Statements Alleged
The complaint against Fennec Pharmaceuticals alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that:
- Fennec had not successfully remediated, and overstated its efforts to remediate, issues with the manufacturing facility of its drug product manufacturer for PEDMARK;
- as a result, the FDA was unlikely to approve the Resubmitted PEDMARK NDA;
- accordingly, the regulatory and commercial prospects of the Resubmitted PEDMARK NDA were overstated; and
- as a result of the foregoing, Defendants’ public statements were materially false and misleading at all relevant times.
What Should You Do?
If you purchased shares of Fennec Pharmaceuticals common stock during the relevant time period, you may be entitled to compensation, without payment of any out-of-pocket litigation fees or costs. You may request the Court to appoint you as lead plaintiff for the class action no later than April 11, 2022. We urge investors to contact us immediately to discuss this. MDF Law PLLC, is a New York City based securities law firm whose practice focuses on advocating for investors. Our attorneys have helped recover hundreds of millions of dollars for investors. We take all our cases on contingency, which means we do not collect a legal fee unless our clients recover money. Contact MDF Law for a free consultation regarding this matter.