March 16, 2021 - An investor in shares of BELLUS Health Inc. (NASDAQ: BLU) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by BELLUS Health Inc. in connection with certain allegedly false and misleading statements made between September 5, 2019 and July 5, 2020.
Canada based BELLUS Health Inc., a clinical stage biopharmaceutical company, develops therapeutics for the treatment of chronic cough and other hypersensitization disorders.
BELLUS Health Inc’s lead product is BLU-5937, which is being developed for the treatment of chronic cough (one that lasts over eight weeks) and other afferent hypersensitization-related disorders.
On July 6, 2020, BELLUS Health Inc. provided investors with an update regarding its product BLU-5937 , in development as a treatment for chronic cough. Bellus announced that the drug had failed a Phase 2 study of chronic cough patients for whom other treatments had not worked. Specifically, BLU-5937 was not significantly better than a placebo at reducing the frequency at which patients coughed.
According to the complaint the plaintiff alleges on behalf of purchasers of BELLUS Health Inc. (NASDAQ: BLU) common shares between September 5, 2019 and July 5, 2020, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between September 5, 2019 and July 5, 2020, the defendants made false and/or misleading statements and/or failed to disclose information that resulted in a scheme that deceived the investing public regarding BELLUS Health Inc. 's business, operations, drug products, drug product development, competition, and present and future business prospects, that facilitated the Company's September 2019 public offering ("Offering"), that created artificial demand for the BELLUS Health Inc. common shares sold in the Offering, that enabled the Company to receive approximately $70 million in net proceeds from the sale of BELLUS Health Inc. common stock in the Offering, and that caused purchases of BELLUS Health Inc. publicly traded common stock at artificially inflated prices.