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InovioVaccine False Claims Class Action Overview:
- Who: Investors are suing pharmaceutical company Inovio over allegations its CEO made intentionally confusing claims about progress on a COVID-19 vaccine.
- Why: The plaintiffs allege the statements were intended to push up its stock price by taking advantage of virus fears.
- Where: The Inovio False Vaccine Claims Class Action was filed in federal court in Pennsylvania.
A class action lawsuit alleging pharmaceutical company Inovio misled the public about having a COVID-19 vaccine in the works — causing its stocks to spike, then plummet — is moving full steam ahead.
On Thursday, plaintiffs moved to certify the class action, saying the number of investors affected was in the thousands, Law360 reported.
The class action alleges that in the midst of the 2020 pandemic, between Feb. 14 and Aug.10, Inovio made intentionally confusing statements around its progress on a COVID-19 vaccine in an attempt to take advantage of virus fears and push up its trading price.
“Defendants’ ongoing unlawful scheme has caused significant damages to investors and allowed the company to raise over $320 million in stock offerings,” a September version of the suit said.
Part of the suit centers on two statements that Inovio Chief Executive J. Joseph Kim made to the media last year, one in February and one in March.
In the first, Kim told told Fox Business News Inovio had constructed its vaccine within three hours of accessing COVID-19’s genetic sequence. That statement caused the company’s stock to rise 7.5 percent. In March, he claimed Inovio “had developed a COVID-19 vaccine in a matter of about three hours,” which caused the stock to spike 69.7 percent.
However, in response to these announcements, Citron Research posted on Twitter that Inovio’s claims were “ludicrous and dangerous” and urged the SEC to investigate.
Although Inovio denied Citron’s allegations, it stated that the vaccine was not actually a “vaccine,” but an “early stage prototype,” causing the company’s stock price to plummet.
In February, a Pennsylvania court partially granted Inovio’s motion to dismiss, but allowed most of the investors’ initial claims to go ahead.
On Thursday, the investors moved for certification, saying that damages in the case could be calculated using a class-wide methodology.
They added that those who purchased Inovio equity securities during the class period were damaged by the same alleged course of conduct.
The investors said the required factors of numerosity, commonality, typicality and adequacy were satisfied as per their filings.
Were you affected by the misleading statements made by Inovio regarding a coronavirus cure? Let us know in the comments below.
The investors are represented by Darren J. Robbins, Tor Gronborg, Trig R. Smith, Matthew J. Balotta and James E. Barz of Robbins Geller Rudman & Dowd LLP and Lawrence F. Stengel of Saxton & Stump.
The Inovio Vaccine False Claims Class Action is Patrick McDermid v. Inovio Pharmaceuticals Inc. et al., Case No. 2:20-cv-01402, in the U.S. District Court for the Eastern District of Pennsylvania.
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2 thoughts onInovio Vaccine False Claims Class Action Lawsuit Moves Forward
What are the class action dates?
What is they latest update on this lawsuit? I am wanting to join it.