BOSTON, Aug. 26, 2016 /PRNewswire/ -- Block & Leviton LLP (blockesq.com) announces that it has filed a class action lawsuit against Keryx Biopharmaceuticals, Inc. ("Keryx" or the "Company") (NASDAQ: KERX) and certain of its officers for violations of the federal securities laws.
Shares in Keryx have plunged nearly 39% since August 1, 2016 when the Company announced that due to a "production-related issue" with the Company's only drug manufacturer, patients who use Keryx's kidney drug Auryxia (the Company's only marketed product) will face a supply interruption until at least October. Keryx also withdrew its full-year forecast regarding both sales and financial results. This news and the resultant stock drop has caused investors to lose tens of millions of dollars.
The case, brought on behalf of investors who purchased or otherwise acquired Keryx securities between September 2, 2013 and August 1, 2016 (the "Class Period"), alleges that the defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company intended to and did contract with only a single contract manufacturer; (2) that the Company lacked adequate inventory controls; (3) that at some point during the Class Period, defendants became aware but did not disclose that its contract manufacturer was experiencing difficulties in production; (4) that these production difficulties would cause the depletion of Keryx's Auryxia inventory, and (5) that, as a result, the Company's financial guidance and statements about Keryx's business, operations, and prospects, were false and misleading.
If you wish to serve as a lead plaintiff, you must move the Court no later than October 3, 2016. As a member of the class, you may seek to file a motion to serve as a lead plaintiff or take no action and remain an absent class member. To learn more about your options or if you have any questions about the litigation, please contact attorneys Steven Harte or Bradley Vettraino at (617) 398-5600, by email at firstname.lastname@example.org or email@example.com, or visit www.blockesq.com/keryx.
Confidentiality to whistleblowers or others with relevant information is assured.
Block & Leviton LLP is a Boston-based law firm representing investors nationwide. The firm's lawyers have collectively been prosecuting securities cases on behalf of individual and institutional investors for over 50 years, and have recovered billions of dollars on their behalf. Block & Leviton's investigations into corporate wrongdoing were recently covered by the New York Times.
The case, filed August 26, 2016, is pending in the United States District Court for District of Massachusetts, and is captioned Karth v. Keryx Biopharmaceuticals, Inc., et al., Ca No. 1:16-cv-11745. The court is located at 1 Courthouse Way, Boston, Massachusetts 02210.
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SOURCE Block & Leviton LLP