February 19, 2021 - An investor in shares of Immunovant, Inc. (NASDAQ: IMVT) filed a lawsuit in the U.S. District Court for the Eastern District of New York over alleged violations of Federal Securities Laws by Immunovant, Inc. f/k/a Health Sciences Acquisitions Corporation in connection with certain allegedly false and misleading statements made between October 2, 2019 and February 1, 2021.
New York based Immunovant, Inc., a clinical-stage biopharmaceutical company, develops monoclonal antibodies for the treatment of autoimmune diseases. On September 29, 2019, Health Sciences Acquisitions Corporation, then a blank check company, also known as a special purpose acquisition company, entered into an agreement with Immunovant Sciences Ltd. ( Legacy Immunovant ), a private biopharmaceutical company, and shareholders of Legacy Immunovant, to effect a merger between the two entities (the Merger ). As a result of the Merger, Health Sciences Acquisitions Corporation acquired all of the issued and outstanding shares of Legacy Immunovant, and Legacy Immunovant became a wholly owned subsidiary of Health Sciences Acquisitions Corporation. Upon the closing of the Merger, Health Sciences Acquisitions Corporation changed its name to Immunovant, Inc.
On February 2, 2021, Immunovant, Inc. announced a “a voluntary pause of dosing in its ongoing clinical trials for IMVT-1401, a treatment for thyroid eye disease ( TED ). Immunovant, Inc. disclosed that it has become aware of a physiological signal consisting of elevated total cholesterol and LDL levels in IMVT-1401-treated patients and [o]ut of an abundance of caution, the Company has decided to voluntarily pause dosing in ongoing clinical studies in both TED and in Warm Autoimmune Hemolytic Anemia, in order to inform patients, investigators, and regulators as well as to modify the monitoring program.
Shares of Immunovant, Inc. (NASDAQ: IMVT) declined on February 2, 2021, to $22.50 per share.
According to the complaint the plaintiff alleges on behalf of purchasers of Immunovant, Inc. (NASDAQ: IMVT) common shares between October 2, 2019 and February 1, 2021, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between October 2, 2019 and February 1, 2021, the Defendants made false and/or misleading statements and/or failed to disclose that Health Sciences Acquisitions Corporation had performed inadequate due diligence into Legacy Immunovant prior to the Merger, and/or ignored or failed to disclose safety issues associated with IMVT-1401, that IMVT-1401 was less safe than the Company had led investors to believe, particularly with respect to treating TED and WAIHA, that the foregoing foreseeably diminished IMVT-1401's prospects for regulatory approval, commercial viability, and profitability, and that as a result, the Company's public statements were materially false and misleading at all relevant times.