Securities Fraud Complaint Filed Against Talis Biomedical (TLIS)
A securities fraud lawsuit has been filed against Talis Biomedical Corporation (NASDAQ: TLIS) for potential securities violations on behalf of shareholders who purchased common stock pursuant to the registration statement and prospectus issued in connection with the company’s IPO in February 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 Talis Biomedical
Summary of Allegations
Talis completed its initial public offering (IPO) in February 2021, selling 15,870,000 shares of common stock at a price of $16 per share. Just weeks later, on March 8, 2021, Talis announced that it had withdrawn its Emergency Use Authorization (EUA) application with the FDA for the Talis One Covid-19 test. In a press release, the Company revealed that “[i]n late February, the FDA informed the company that it cannot ensure the comparator assay used in the primary study has sufficient sensitivity to support Talis’s EUA application.” As a result, Talis “intends to initiate its previously planned clinical validation study in a point-of-care environment” to submit its EUA application “early in the second quarter of 2021.” This study “was designed with a different comparator study, which Talis believes will address the FDA’s concerns.” Based on this news, the shares of the stock fell from $14.65 to $12.85.
Subsequently, on August 10, 2021, Talis released information that its “development timelines have been extended by delays in the launching of [Talis’s] COVID-19 test and manufacturing scale.” As a result, Talis “expect[s] to see [its] first meaningful revenue ramp in 2022.” Based on this news, the shares of the stock fell from $14.65 to $12.85.
On August 30, 2021, after the market closed, Talis announced that its Chief Executive Officer, Brian Coe, had “stepped down” as President, CEO, and Director. On November 15, 2021, Talis announced that Brian Blaser was appointed as President, Chief Executive Officer, and Director of Talis effective December 1, 2021. However, a week after his appointment, on December 8, 2021, Talis announced that Brian Blaser had stepped down from his positions.
Stock Drop from IPO Price
By the commencement of this action, Talis stock has traded as low as $3.81 per share. This represents approximately a 76% drop from the $16 per share IPO price.
The complaint filed in this class action alleges that the Registration Statement was false and misleading and omitted to state material adverse facts. Specifically, Defendants failed to disclose to investors:
- The comparator assay in the primary study lacked sufficient sensitivity to support Talis’s EUA application for Talis One COVID-19 test;
- As a result, Talis was reasonably likely to experience delays in obtaining regulatory approval for the Talis One COVID-19 test;
- As a result, the Company’s commercialization timeline would be significantly delayed; and
- As a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
What Should You Do?
If you purchased shares of Talis 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 8, 2022. We urge investors to contact us. MDF Law PLLC, is a New York City based investment fraud law firm whose practice focuses on advocating for investors. We 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.