A Complex Securities Class Action Unfolds
Law Offices of Howard G. Smith has set the stage for a legal drama with the announcement of a class action lawsuit against Allarity Therapeutics, Inc. (“Allarity” or the “Company”) ALLR investors who bought securities during the turbulent period between May 17, 2022 and July 19, 2024.
Rocky Waters and the Ebb of Stock Prices
Revelations about investigations and terminations have churned unrest among Allarity investors. A particularly seismic event occurred on February 6, 2023, when Allarity disclosed that the SEC was scrutinizing their activities, resulting in a 3.8% plummet of the stock price to $0.228 per share. A subsequent bombshell hit on December 11, 2023, with the termination of the CEO leading to a 13.4% decline, closing at $0.486 per share.
The SEC’s Shadows Loom Larger
Come July 22, 2024, the clouds darkened further as Allarity revealed the reception of a Wells Notice from the SEC, catalyzing another fall in stock price to $0.164 per share. The actions leading to this notice were allegedly linked to meetings with the FDA regarding the NDA for Dovitinib or Dovitinib-DRP.
The Allegations and the Future of Allarity
The class action complaint paints a grim picture, accusing Defendants of concealing crucial information about the Company’s affairs, potentially imperiling investors. Allegedly, misconduct around the Dovitinib NDA and Dovitinib-DRP PMA had left the Company vulnerable to regulatory scrutiny and legal troubles, a far cry from the rosy outlook presented to the investing public.
Exploring Legal Avenues
For Allarity investors caught in this tumultuous tide, the path forward may lie in seeking redress through the legal avenues unveiled by the class action. Howard G. Smith and the Law Offices of Howard G. Smith stand as stalwarts in this tempest, offering guidance and representation to those affected.
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