Shareholder Class Action Filed Against MannKind Corporation by the Law Firm of Barroway Topaz Kessler Meltzer & Check, LLP
RADNOR, Pa., Feb. 16, 2011 /PRNewswire/ -- The following statement was issued today by the law firm of Barroway Topaz Kessler Meltzer & Check, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Central District of California on behalf of purchasers of the securities of MannKind Corporation (Nasdaq: MNKD) ("MannKind" or the "Company"), who purchased or otherwise acquired MannKind securities between June 25, 2010 and January 19, 2011, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Barroway Topaz Kessler Meltzer & Check, LLP (Darren J. Check, Esq. or David M. Promisloff, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at email@example.com.
The Complaint charges MannKind and certain of its officers and directors with violations of the Securities Exchange Act of 1934. MannKind is a biopharmaceutical company that focuses on the discovery, development and commercialization of therapeutic products for patients with diseases such as diabetes and cancer. The Company's diabetes pipeline includes AFREZZA which is an inhaled insulin. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) AFREZZA was far riskier than defendants had led on; (2) even if AFREZZA was approved by the U.S. Food and Drug Administration (the "FDA"), it would require additional risk disclosures to patients; (3) the FDA's delay in approving AFREZZA was not solely related to the inspection of the European facility; (4) it was highly unlikely that the FDA would approve AFREZZA in the near future; (5) AFREZZA's approval could be inhibited by the FDA's concerns regarding its clinical utility; (6) the Company lacked adequate internal controls; and (7) defendants' statements about the Company's operations and prospects were false and misleading at all relevant times.
Prior to the Class Period, AFREZZA's approval had been delayed by the FDA. Defendants characterized the delay as a result of an FDA mistake in not completing an inspection of a European facility that made the insulin used in AFREZZA. During the Class Period, defendants repeatedly represented that AFREZZA's approval by the FDA was imminent. Defendants also told investors that AFREZZA was an extremely valuable product for the treatment of adult patients with Type 1 and Type 2 diabetes for the control of hyperglycemia. On January 18, 2011, defendants received a complete response letter from the FDA regarding MannKind's New Drug Application for AFREZZA, which revealed that the FDA had again deferred the approval of AFREZZA. The FDA also ordered two additional clinical trials with the inhaler. Defendants did not disclose this information on January 18, 2011. Instead, on January 19, 2011, less than an hour before the market closed, defendants revealed the contents of the FDA's complete response letter. This announcement followed a temporary halt in the trading of MannKind stock. Upon the release of this news, shares of the Company's stock fell approximately $2.94 per share, or 32.3%, to close on January 20, 2011 at $6.17 per share, on unusually heavy trading volume.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Barroway Topaz Kessler Meltzer & Check which prosecutes class actions in both state and federal courts throughout the country. Barroway Topaz Kessler Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.
For more information about Barroway Topaz Kessler Meltzer & Check, or for additional information about participating in this action, please visit www.btkmc.com.
If you are a member of the class described above, you may, not later than April 1, 2011 move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Barroway Topaz Kessler Meltzer & Check, LLP
Darren J. Check, Esq.
David M. Promisloff, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at firstname.lastname@example.org
SOURCE Barroway Topaz Kessler Meltzer & Check, LLP