Securities Fraud Complaint Filed Against NRx Pharmaceuticals
A securities fraud lawsuit has been filed against NRx Pharmaceuticals, Inc. (NASDAQ: NRXP) for potential securities violations on behalf of shareholders who purchased shares anytime during the period from June 1, 2021 through November 4, 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 Filed against NRXP
Issue Involves ZYESAMI
In June 2021, NRx Pharmaceuticals announced that it filed an application with U.S. Food and Drug Administration requesting Emergency Use Authorization for ZYESAMI to treat critically ill Covid-19 patients suffering with respiratory failure. On November 4, 2021, NRx announced that the FDA declined to issue an EUA for ZYESAMI “due to insufficient data regarding the known and potential benefits of the medicine and the known and potential risks of ZYESAMI in patients suffering from Critical COVID-19 with respiratory failure.” On this news, on November 5, 2021 NRx’s stock fell approximately 25%, from $8.92 to close at $6.65 per share.
Summary of Allegations Against NRx Pharmaceuticals
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that:
- The ZYESAMI EUA Application contained insufficient data regarding the potential benefits and risks of ZYESAMI;
- accordingly, the FDA was unlikely to approve the ZYESAMI EUA Application in its present form; and
- as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
What Should You Do?
If you purchased shares of NRx 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 March 21, 2022. We urge investors to contact us immediately to discuss this issue. MDF Law PLLC, is a New York City based securities and investment fraud law firm whose practice focuses on advocating for investors. Our attorneys have helped to 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.