Scott+Scott, along with co-counsel, has filed a securities class action lawsuit in the United States District Court for the Southern District of New York against Actinium Pharmaceuticals, Inc. (NYSE American: ATNM), and certain of its former and current officers and/or directors on behalf of all persons other than Defendants who purchased or otherwise acquired Actinium securities between October 31, 2022, and August 2, 2024, inclusive, and, as a result, suffered financial losses.
Actinium is a late-stage biopharmaceutical company that develops targeted radiotherapies, such as Iomab-B, to treat people who have failed existing oncology therapies. Iomab-B is an induction-and-conditioning agent used before bone marrow transplants and has the potential to treat elderly relapsed or refractory acute myeloid leukemia. Actinium evaluated Iomab-B in the pivotal Phase 3 Sierra trial (the “Sierra Trial”), where the drug met the primary endpoint of durable Complete Remission with statistical significance (p<0.0001).
The Class Action alleges that, during the Class Period, Defendants made misleading statements and omissions regarding the Company’s business, financial condition, and prospects.
The complaint further details:
Throughout the Class Period, Defendants made materially false and misleading statements that conditioned investors to believe that there was a very high likelihood that the FDA would review and approve Actinium’s Biologics License Application (“BLA”) for Iomab-B. Specifically, Defendants (i) repeatedly touted the Sierra Trial’s positive DCR data while downplaying the study’s failure to generate statistically significant or clinically meaningful Overall Survival data; and (ii) misled investors about the importance of the Sierra Trial’s poor Overall Survival data by claiming that the FDA had somehow blessed the design of the Sierra Trial such that the lack of statistically significant or clinically meaningful OS data would not be a barrier to approval of the BLA.
As the truth about Actinium’s business reached the market, the price of Actinium’s stock suffered significant declines, harming investors. For example, on the morning of August 5, 2024, before the market opened, when Actinium issued a press release providing, among other things, a regulatory update on the planned BLA filing and the future plans for Iomab-B in the U.S. Specifically, the press release revealed the Company would need to conduct an additional clinical trial to further support the Company’s BLA filing. On this news, the price of Actinium’s common stock plummeted $3.69, or nearly 60%, to close at $2.48, on unusually high trading volume
The case is: Kohil v. Actinium Pharmaceuticals, Inc., et al., Case No. 1:25-cv-02553. The lawsuit was filed with The Schall Law Firm as additional counsel. Read more here.