Class Action Suit Filed Against KalaBios
Goldberg Law PC has announced a class action suit against KaloBios Pharmaceuticals, charging that the company, until recently headed by industry “bad boy” Martin Shkreli, may have provided “misleading information” to investors.
Shrekli was indicted on securities fraud charges several days before Christmas.
KaloBios thus becomes the second drugmaker with ties to Shkreli to come under pressure since the indictment. The first was Turing Pharmaceuticals, another company headed by the former hedge fund manager.
Turing and its CEO were widely criticized for jacking up the price of the 62-year-old anti-parasitic drug Daraprim (pyrimethamine) from $13.50 to $700 a tablet shortly after acquiring marketing rights in August 2015.
According to reports, KaloBios had considered raising prices of another parasitic infection drug, benznidazole, to around $1,000 per pill.
On December 29, KaloBios filed a voluntary petition for Chapter 11 bankruptcy protection in a US bankruptcy court for the District of Delaware. A day later, the drugmaker was informed by the NASDAQ stock market that its shares would be delisted.
The company’s appeal against the decision to delist will be heard by a NASDAQ appeal panel in late February.
