A class action lawsuit has been filed against biopharmaceutical company Kyverna Therapeutics for the alleged violation of federal securities laws.
During its IPO, Kyverna, which is focused on developing cell therapies for patients suffering from autoimmune diseases, offered 14.5 million shares of common stock at $22.00 per share, resulting in the company receiving approximately $296 million in net proceeds.
The Kyverna lawsuit alleges that the IPO’s registration statement contained false and misleading statements and/or concealed material adverse facts.
These include that: Kyverna did not disclose negative information about one of its clinical trials; the undisclosed negative information was likely to, and eventually did, substantially and negatively affect Kyverna’s main product, making the information and trends disclosed in the registration statement, false, misleading, and not indicative of Kyverna’s business prospects; and that Kyverna’s statements about risk factors did not adequately disclose the risk posed by Kyverna’s nondisclosure of adverse information about one of its clinical trials, that other adverse results and trends had already manifested the probable materially negative effects on Kyverna’s future results, share price, and prospects.
The allegation have been made following June 14, 2024, when Kyverna published an investor presentation that revealed adverse data about one of its clinical trials. The Kyverna lawsuit alleges the company’s shares plummeted after this data was disclosed.
Following this disclosure, the company’s stock had traded as low as $3.92 per share, a decline of more than 82 per cent from the IPO’s price per share.
DiCello Levitt has file the class action lawsuit and Glancy Prongay & Murray LLP, a shareholder rights law firm, has also confirmed it has commenced an investigation on behalf of Kyverna Therapeutics investors concerning the company’s possible violations of the federal securities laws.
