WAYNE, Pa., Aug. 9, 2016 /PRNewswire/ -- Ryan & Maniskas, LLP announces that a class action lawsuit has been filed in United States District Court for the Southern District of New York on behalf of purchasers of Keryx Biopharmaceuticals Inc. ("Keryx" or the "Company") (NASDAQ: KERX) between March 2, 2016 and July 29, 2016, inclusive (the "Class Period").
Keryx shareholders may, no later than October 3, 2016, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Keryx and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218 or to sign up online, visit: www.rmclasslaw.com/cases/kerx.
The complaint charges Keryx and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Keryx is a biopharmaceutical company that develops and markets treatments for renal disease. The Company's lead product, Auryxia (ferric citrate), is an oral, ferric iron-based compound that is used for the control of serum phosphorus levels in patients with chronic kidney disease on dialysis. Keryx commenced its commercial launch of Auryxia in the United States in December 2014.
The complaint alleges that during the Class Period, defendants misrepresented and failed to disclose material adverse facts regarding the Company's business and prospects, which were known to defendants or recklessly disregarded by them, including that: (a) the Company's sole third-party contract manufacturer for Auryxia was experiencing manufacturing difficulties that would require it to cease manufacture of Auryxia while the problems were rectified; (b) without that contract manufacturer manufacturing Auryxia, Keryx would not have enough inventory of Auryxia to meet its projected sales guidance; (c) Keryx was attempting to get another third-party manufacturer for Auryxia approved by the FDA, but that approval would not come until at least November 2016; and (d) based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company, its business and financial prospects, and its ability to meet its 2016 guidance during the Class Period.
On August 1, 2016, Keryx issued a press release and conducted a conference call with investors and stock analysts. During the call, Keryx announced that due to previously undisclosed manufacturing and supply issues, the Company was facing an imminent supply interruption for Auryxia until at least October 2016 and it was withdrawing its fiscal 2016 guidance. Keryx also disclosed that it would not be able to get its second contract manufacturer approved by regulators until at least November 2016. On this news, the market price of Keryx common stock declined precipitously, falling $2.64 per share, or 36%, from its close of $7.36 per share on July 29, 2016 to close at $4.72 per share on August 1, 2016, on unusually high trading volume.
If you are a member of the class, you may, no later than October 3, 2016, request that the Court appoint you as lead plaintiff of the class. 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. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action.
For more information regarding this, please contact Ryan & Maniskas, LLP (Richard A. Maniskas, Esquire) toll-free at (877) 316-3218 or by email at [email protected] or visit: www.rmclasslaw.com/cases/kerx. For more information about class action cases in general or to learn more about Ryan & Maniskas, LLP, please visit our website: www.rmclasslaw.com.
Ryan & Maniskas, LLP is a national shareholder litigation firm. Ryan & Maniskas, LLP is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.
SOURCE Ryan & Maniskas, LLP