Shareholder Alert: Robbins LLP Announces That Genfit SA (GNFT) is Being Sued for Misleading Shareholders
SAN DIEGO & CAMBRIDGE, Mass.--(BUSINESS WIRE)--Dec 23, 2020--
Shareholder rights law firm Robbins LLP announces that a purchaser of Genfit SA American Depository Shares (NASDAQ: GNFT) filed a class action complaint against the Company and its officers and directors for alleged violations of the Securities Act of 1933 pursuant to the Company’s initial public offering in the U.S., conducted on March 27, 2019 (the “IPO”). Genfit is a biopharmaceutical company that develops therapeutic and diagnostic solutions for metabolic, inflammatory, and autoimmune or fibrotic diseases affecting primarily the liver and gastro-enterology. Genfit’s lead drug candidate is elafibranor.
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Genfit SA (GNFT) Misled Shareholders Regarding the Viability of its Lead Drug Candidate Elafibranor
According to the complaint, Genfit conducted its IPO on March 27, 2019, at the price of $20.32 per share. At the time of the IPO, elafibranor was in a “pivotal” phase 3 clinical trial called “RESOLVE-IT,” which evaluated the efficacy and safety of elafibranor 120mg versus placebo in patients with nonalcoholic steatohepatitis (“NASH”) and fibrosis. Genfit planned to use the data from the RESOLVE-IT study to support the Company’s new drug application to the FDA for elafibranor. The Offering Documents supporting the IPO stated that Genfit had progressed to the phase 3 RESOLVE-IT study based on the positive results from Genfit’s phase 2b study concerning the efficacy elafibranor. Genfit stated that “The results provide strong and unequivocal evidence of the beneficial effects of [elafibranor] at 120 mg/d on the primary endpoint.” Further, the Offering Documents repeatedly stated that elafibranor was “well-positioned” for FDA approval.
On February 20, 2020, post-market, Genfit issued a press release announcing a delay in the release of topline interim results from the RESOLVE-IT study. On this news, Genfit’s stock fell $1.05 per share, or 5.87% over two trading days. Then, on May 11, 2020, during after-market hours, Genfit issued a press release announcing results from an interim analysis of the RESOLVE-IT phase 3 study of elafibranor, disclosing that ”[e]lafibranor did not demonstrate a statistically significant effect on the primary endpoint of NASH resolution without worsening of fibrosis.” On this news, Genfit’s ADS price fell 67.73%, or $14.90 per share, to close at $7.10 per share on May 12, 2020.
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SOURCE: Robbins LLP
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PUB: 12/23/2020 03:11 PM/DISC: 12/23/2020 03:11 PM